Impact of Budget 2020 on NRI’s across globe.

Following is a brief description of changes made in budget 2020 which will have an impact for NRI community

What has changed ?

1. Who will be treated as NRI by income tax rule?
Old rule : Should stay outside India for more than 182 days.

New Rule :
– Should be staying outside India for more than 240 days.
– Should be having a resident permit of any country outside of India

2.Who is a Resident, But Not Ordinarily Resident ?

Old rule: Should have stayed outside India for 9 years out of last 10 years preceding that year and other conditions

New Rule : Should have stayed outside India for 7 years out of last 10 years preceding that year nd no other conditions.

3. When will you become Resident Indian?

Old rule : If you have stayed in India for more than 182 days

The new rule : If you have stayed for more than 182 days. ( As per clarification received subsequent to production of this video )

Income Tax Slabs

4. Two separate slabs issued with a choice to choose.for person filing tax returns

Old Slab – No change in tax rate , can claim many deductions.

New Slabs – Income tax rate reduced up to 15 lakhs slab but no deductions allowed .

5. Who can benefit by choosing new tax slabs ?

a. Those who do not have any deductions to make under different provisions

b. Those who do not have funds to invest in schemes for claiming deductions

c. Those who file returns online without the help of professionals

6. Will NRIs income be taxed now if they stay in a country where they do not pay taxes?

Answer is NO, if they have valid resident permits to live in that country. If any one who tries to stay out of India for more than 240 days by way of using visit visas of many countries , or multiple visit visa of any region without a valid work or residence permit will be treated as resident Indian for tax purpose even though they stay outside of India for more than 240 days. This is an anti tax abuse clause which has been incorporated into Section 6 of Income tax act.

NRI Money Clinic is a YouTube channel created by Dr. Chandrakantha Bhat , an investment consultant and financial planner in Dubai . It aims to spread financial literacy and educate on money matters for resident and non resident Indians . The channel discusses subjects like Fixed Deposits , Taxation , Mutual Funds , Insurance , Specific Issues pertaining to NRI community and every other investment opportunity.

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Links to my previous videos

https://youtu.be/UfNQkH3cmWE CORONA VIRUS – IMPACT ON GLOBAL MARKETS – PART 1

https://youtu.be/MC5nAbWLkMo CORONA CRASH 2020 – DOS AND DON’T FOR YOUR SURVIVAL

https://youtu.be/KejZ8nKpLPA HOW TO MAKE MONEY FROM MARKET CRASH

Role of a Financial Planner: https://www.youtube.com/watch?v=KZPnnn3NqyM
What is the meaning of money? : https://youtu.be/AAxQ4ywScos
6 steps to generate good returns on your investments – https://youtu.be/AAxQ4ywScos
Why you should watch this channel – https://youtu.be/rgsHfw41W_8
Don’t Buy a Life Insurance Policy Until You Watch This! https://youtu.be/q0adm_CKvew
Why are your mutual funds not showing the returns?https://youtu.be/28TfBq_OGx8

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