As the Budget speech comes to an end, we list down the quick takeaways for Non Resident Indians (NRIs). We will continue to bring you detailed analyses as finer aspects of the Finance Bill trickle in.
Measure: The government of India will now allow qualified foreign investors access to the Indian corporate debt market. Qualified foreign investors, or QFIs, can be individuals, groups or associations based abroad.
Impact: This proposal, when implemented will deepen the country's shallow bond market and also open up a lucrative avenue for foreign individual investors who are keen to participate in India's growth story. But, NRIs will hope for something more. On paper, NRIs were always permitted to invest in Indian corporate bonds. However, it required the issuing companies to enable the option for NRI investors with specific permission with the Reserve Bank of India. Often, companies chose not to do so, restricting access to NRIs. It is hoped that this move will also improve access for NRIs in the corporate bond market.
Measure: To introduce mandatory foreign asset reporting; income tax body to have powers to open previous returns of up to 16 years to check for tax evasion
Impact: While the intention of this proposal is to bring to book all those who have been evading taxes by stashing their money abroad, one fears that it will create unnecessary reporting requirements and needless harassment for NRIs who have returned to India after a long stint abroad.
Measure: Tax slabs have been changed to the following: Up to Rs 2 lakh: NIL (earlier Rs 1.8 lakh) Rs 2-5 lakh: 10% Rs 5-10 lakh: 20% (earlier Rs 5-8 lakh) Above Rs 10 lakh: 30% (earlier above 8 lakh)
Impact: For NRIs, as for all resident Indians, the tax liability will come down. A tax reduction of up to Rs 22,000 is likely on income of Rs 10 lakh.
Measure: The Direct Tax Code (DTC) which was expected to be implemented from April 2012, has been deferred for now
Impact: This might come as a relief for NRIs as some of the provisions of the DTC were quite harsh. For instance, under the proposed DTC, any individual (including NRIs/PIO) will become resident, if they are present in India for 60 days or more in the financial year and 365 days or more over a period of four years prior to the financial year and would be liable to pay taxes on their global income. This proposal would have impacted all those NRIs who visited India frequently for personal or business purposes.
Measure: To allow electronic voting for shareholders
Impact: If the Government allows electronic voting, this will help NRI shareholders to participate more actively
Measure: Gold purchases in India to become expensive; customs duty doubled
Impact: If keeping your money in India in the form of gold has been a favorite avenue, that might just change. Gold will become more expensive as the FM doubled customs duty.
He further stated that increase in the direct tax slabs is hardly a relief given the near double digit rise in inflation. "It would have been better if the government had reduced the high rate of taxation (as high as 30 per cent in the higher bracket and even more painful in the lower ones. It would have reduced black money and promoted investments. "However, poor infrastructure, fall of export-driven industry, collapsing agriculture and widespread corruption will further thwart the promise of the enterprising Indian," Rasheed said. On the other hand, K V Shamsudheen, Chairman, Pravasi Bandhu Welfare Trust appreciated the Finance Minister for his direct support to the capital market by introducing Rajiv Gandhi Equity Scheme and tax exemption for small investors.
No verdict yet in Indian American student's spycam trial
NEW YORK.March17,2012: A New Jersey jury ended the second day of deliberations in the trial of an Indian American accused of using a webcam to spy on his gay roommate without reaching a verdict.
The jury in New Brunswick has deliberated for about 9 1/2 hours so far on the case of former Rutgers University student Dharun Ravi. It's scheduled to resume Friday.Ravi, now 20, faces 15 criminal charges, including invasion of privacy and bias intimidation, a hate crime, which carry a potential jail time of up to 10 years.His freshman-year roommate, Tyler Clementi, jumped to his death from the George Washington Bridge in September 2010, just days after Clementi's intimate encounter with another man.Jurors have 12 days of testimony from about 30 witnesses to consider. They are working their way through a verdict sheet that calls for them to render decisions of either guilty or not guilty on 35 different questions related to the 15 counts.
On Sep 19, 2010 Ravi is alleged to have briefly spied on Clementi and a man known only as M.B. for a few seconds with Molly Wei, a dorm mate who was a resident across the hall from him. Ravi is charged with making a second attempt to spy on them two days later.
GOPIO to pay tribute to the patriots of the Gadar Movement
WASHINGTON.March17,2012: In an effort to pay befitting tribute to the patriots and heroes of the Gadar Movement, a US-based organisation of people of Indian origin has announced the Gadar Centennial Commemoration in 2013. The Global Organisation for People of Indian Origin (GOPIO) recently wrote a letter to Prime Minister Manmohan Singh in this regard. It was in 1913 that the Gadar Movement started with the formation of Hindustan Association of the Pacific Coast in 1913 with headquarters in San Francisco; which over the years became a nationalistic movement to liberate India with the force of arms from British colonialism. The association began publishing a magazine named Gadar which became very popular with expatriates. Over a period of time, the Hindustan Association itself became known as the Gadar party.
"The history of the Gadar movement is a testimony of the deep love that the Indian immigrants had for their motherland, India. The Gadarites wanted India freed from the British and did not hesitate to make any sacrifices for the cause of freedom, dignity and prosperity of their motherland," said California-based Inder Singh, chairman of GOPIO-International. GOPIO International president Ashook Ramsaran said the Gadar Centennial Commemoration would kick-off on August 4, 2012. This would be followed by a consecutive series of lecture forum and culminating with a finale of a memorial commemoration in San Francisco on Nov 1, 2013. A series of functions would be held in cities across the world. In the United States it is being planned in San Francisco, New York, Los Angeles, Washington, Boston, Chicago, Seattle, Houston, Miami and Atlanta.
In Canada functions are being planned in Vancouver, Toronto. It would also be held in Paris, London, Sydney, Auckland, Durban and New Delhi. New York-based Ramsaran said GOPIO is taking this initiative for a Gadar Centennial Commemoration and seeking support of people of Indian origin, NRI/PIO organizations, agencies and institutions for a joint celebration of the upcoming 100th anniversary of the Gadar movement in 2013. GOPIO has developed tentative plans and would finalise these plans soon after the meetings of Centennial Commemoration Committee, he said. "The Gadar Movement is an integral part of the rich heritage in the United States for the Indian Americans and of Indian history. The Gadarites left an extra-ordinary legacy for the future generations and a global centennial commemoration is a fitting and well deserved tribute," Ramsaran said.
Measure: The government of India will now allow qualified foreign investors access to the Indian corporate debt market. Qualified foreign investors, or QFIs, can be individuals, groups or associations based abroad.
Impact: This proposal, when implemented will deepen the country's shallow bond market and also open up a lucrative avenue for foreign individual investors who are keen to participate in India's growth story. But, NRIs will hope for something more. On paper, NRIs were always permitted to invest in Indian corporate bonds. However, it required the issuing companies to enable the option for NRI investors with specific permission with the Reserve Bank of India. Often, companies chose not to do so, restricting access to NRIs. It is hoped that this move will also improve access for NRIs in the corporate bond market.
Measure: To introduce mandatory foreign asset reporting; income tax body to have powers to open previous returns of up to 16 years to check for tax evasion
Impact: While the intention of this proposal is to bring to book all those who have been evading taxes by stashing their money abroad, one fears that it will create unnecessary reporting requirements and needless harassment for NRIs who have returned to India after a long stint abroad.
Measure: Tax slabs have been changed to the following: Up to Rs 2 lakh: NIL (earlier Rs 1.8 lakh) Rs 2-5 lakh: 10% Rs 5-10 lakh: 20% (earlier Rs 5-8 lakh) Above Rs 10 lakh: 30% (earlier above 8 lakh)
Impact: For NRIs, as for all resident Indians, the tax liability will come down. A tax reduction of up to Rs 22,000 is likely on income of Rs 10 lakh.
Measure: The Direct Tax Code (DTC) which was expected to be implemented from April 2012, has been deferred for now
Impact: This might come as a relief for NRIs as some of the provisions of the DTC were quite harsh. For instance, under the proposed DTC, any individual (including NRIs/PIO) will become resident, if they are present in India for 60 days or more in the financial year and 365 days or more over a period of four years prior to the financial year and would be liable to pay taxes on their global income. This proposal would have impacted all those NRIs who visited India frequently for personal or business purposes.
Measure: To allow electronic voting for shareholders
Impact: If the Government allows electronic voting, this will help NRI shareholders to participate more actively
Measure: Gold purchases in India to become expensive; customs duty doubled
Impact: If keeping your money in India in the form of gold has been a favorite avenue, that might just change. Gold will become more expensive as the FM doubled customs duty.
Budget gets mixed reactions from NRIs in Gulf
DUBAI,March17,2012: The NRI community in the Gulf region had mixed feelings for the Budget, as some of them welcomed the hike in duty on gold while some others were disappointed by increase in service tax and excise duty. ITL Cosmos Group President Ram Buxani said increase in the customs duty on gold will help Dubai's business. On the hike in service tax and excise duty in the Budget presented by Finance Minister Pranab Mukherjee today, Indian Business Leaders Forum (IBLF) President Sudesh K Aggarwal said, "The common man will get adversely affected due to the increase in the indirect taxation - such as increase in the excise duty and service tax." "The government should have focused more on widening the tax base and bringing more people on the tax net through effective management than increasing the tax at this juncture," he added. However, he termed the delay in implementation of the Direct Tax Code (DTC) as a positive step and appealed to the government that the demands of the NRIs should be kept in mind as and when DTC is implemented and 'status quo' should be maintained as regards to their number of days of stay in India. Adil Rasheed, an Abu Dhabi- based academician and researcher said this budget merely confirms fears of most Indians. "The 5.9 per cent budget deficit to be funded by money printing, thanks to 70 per cent odd debt-to-GDP ratio, merely shows that the bloated government will squeeze the tax payer further. "By increasing indirect taxes, particularly service tax from 10-12 per cent and by pledging to reduce subsidies, inflation will skyrocket as the hardworking Indian will be made to pay for government profligacy," he said. He further stated that increase in the direct tax slabs is hardly a relief given the near double digit rise in inflation. "It would have been better if the government had reduced the high rate of taxation (as high as 30 per cent in the higher bracket and even more painful in the lower ones. It would have reduced black money and promoted investments. "However, poor infrastructure, fall of export-driven industry, collapsing agriculture and widespread corruption will further thwart the promise of the enterprising Indian," Rasheed said. On the other hand, K V Shamsudheen, Chairman, Pravasi Bandhu Welfare Trust appreciated the Finance Minister for his direct support to the capital market by introducing Rajiv Gandhi Equity Scheme and tax exemption for small investors.
No verdict yet in Indian American student's spycam trial
NEW YORK.March17,2012: A New Jersey jury ended the second day of deliberations in the trial of an Indian American accused of using a webcam to spy on his gay roommate without reaching a verdict.
The jury in New Brunswick has deliberated for about 9 1/2 hours so far on the case of former Rutgers University student Dharun Ravi. It's scheduled to resume Friday.Ravi, now 20, faces 15 criminal charges, including invasion of privacy and bias intimidation, a hate crime, which carry a potential jail time of up to 10 years.His freshman-year roommate, Tyler Clementi, jumped to his death from the George Washington Bridge in September 2010, just days after Clementi's intimate encounter with another man.Jurors have 12 days of testimony from about 30 witnesses to consider. They are working their way through a verdict sheet that calls for them to render decisions of either guilty or not guilty on 35 different questions related to the 15 counts.
On Sep 19, 2010 Ravi is alleged to have briefly spied on Clementi and a man known only as M.B. for a few seconds with Molly Wei, a dorm mate who was a resident across the hall from him. Ravi is charged with making a second attempt to spy on them two days later.
GOPIO to pay tribute to the patriots of the Gadar Movement
WASHINGTON.March17,2012: In an effort to pay befitting tribute to the patriots and heroes of the Gadar Movement, a US-based organisation of people of Indian origin has announced the Gadar Centennial Commemoration in 2013. The Global Organisation for People of Indian Origin (GOPIO) recently wrote a letter to Prime Minister Manmohan Singh in this regard. It was in 1913 that the Gadar Movement started with the formation of Hindustan Association of the Pacific Coast in 1913 with headquarters in San Francisco; which over the years became a nationalistic movement to liberate India with the force of arms from British colonialism. The association began publishing a magazine named Gadar which became very popular with expatriates. Over a period of time, the Hindustan Association itself became known as the Gadar party.
"The history of the Gadar movement is a testimony of the deep love that the Indian immigrants had for their motherland, India. The Gadarites wanted India freed from the British and did not hesitate to make any sacrifices for the cause of freedom, dignity and prosperity of their motherland," said California-based Inder Singh, chairman of GOPIO-International. GOPIO International president Ashook Ramsaran said the Gadar Centennial Commemoration would kick-off on August 4, 2012. This would be followed by a consecutive series of lecture forum and culminating with a finale of a memorial commemoration in San Francisco on Nov 1, 2013. A series of functions would be held in cities across the world. In the United States it is being planned in San Francisco, New York, Los Angeles, Washington, Boston, Chicago, Seattle, Houston, Miami and Atlanta.
In Canada functions are being planned in Vancouver, Toronto. It would also be held in Paris, London, Sydney, Auckland, Durban and New Delhi. New York-based Ramsaran said GOPIO is taking this initiative for a Gadar Centennial Commemoration and seeking support of people of Indian origin, NRI/PIO organizations, agencies and institutions for a joint celebration of the upcoming 100th anniversary of the Gadar movement in 2013. GOPIO has developed tentative plans and would finalise these plans soon after the meetings of Centennial Commemoration Committee, he said. "The Gadar Movement is an integral part of the rich heritage in the United States for the Indian Americans and of Indian history. The Gadarites left an extra-ordinary legacy for the future generations and a global centennial commemoration is a fitting and well deserved tribute," Ramsaran said.