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Indian expatriates in Dubai and other parts of the Arabian Gulf find income tax rules complicated
Non-resident Indians (NRIs) may be major investors in the domestic real estate sector and stock market, but most of them do not regularly file income tax (IT) returns in the country and do not even know their IT login details , According to a report by a leading financial services company.
According to a survey conducted by Mudra Portfolio Managers, more than 85% of NRIs do not know their IT login details.
Although 75% of people did not update their tax files by providing phone or email details.
According to the survey results of more than 2,500 NRIs covering seven countries in the past four years, only 28% of NRIs regularly submit IT declarations in their home countries.
Mudra Portfolio Manager reports: “Considering that Aadhaar (similar to Emirates ID) is used for many verifications, it is important to ensure that the correct number and email ID are associated to facilitate transactions and avoid unauthorized access.”
“In addition, 37% of NRIs do not have the original PAN card, and nearly 67% of them did not apply for a PAN (permanent account number) card for their spouse or children under the age of 20. This shows that the basic paperwork itself is very important for India. No transaction is complete.”
Anil Harish, Senior Advocate of DM Harish & Co in Mumbai, told Khaliji Times Many NRIs in Dubai and other parts of the Arabian Gulf find that India’s IT regulations are complex.
“They do invest part of their assets in India, but due to the constant changes in complex rules and regulations, most people prefer to stay away,” Harish said.
“The frequent changes in IT regulations do not bode well for overseas Indian investments,” he added.
When submitting the IT declaration form, they must provide all the details, including the mobile phone number, but in many cases, the one-time password (OTP) could not be delivered on time, which turned out to be a long and frustrating experience, Harish said pass.
Mudra reports that more than 70% of NRIs holding Aadhaar cards have no associated phone numbers.
Although huge changes are being introduced, the situation has not improved.
“Even many resident Indians are fed up with these regulations,” he said.
Harish gave the example of an Indian who owns a charitable trust. However, complicated tax regulations forced him to put it to the end and no longer get involved in related troubles.
The Indian currency continued to weaken against the U.S. dollar and other currencies related to it. This trend has led many NRIs in the Middle East to be more willing to look for worry-free investment opportunities elsewhere in the world.
Many NRIs also face problems when selling real estate in India because they involve source tax relief (TDS), tax relief account number (TDAN), TDS reconciliation analysis and correction activation system (TRACES), and other acronyms that often confuse them Abbreviation.
Some NRIs also believe that the TDS deducted from their investment profits reflects taxation and they do not need to submit any IT returns.
To make matters worse, this ignorance persists due to the increasing lack of communication between the IT department and NRI.
In addition, analysts said that the lack of a user-friendly system has caused some controversies to prolong. As a result, many NRIs are frustrated and fail to make further investments in the country.
nithin@khaleejtimes.com
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