ADVERTISEMENTs
.png)
Survey reveals NRIs in the US grapple with double taxation
Despite the importance of filing tax returns, a minority of NRIs, including 5 percent from Singapore, 4 percent from the UK, and 2 percent from the US, admit to not filing returns in India
Survey reveals NRIs in the US grapple with double taxation / Pexels
A survey conducted by SBNRI, a comprehensive investment platform catering to NRIs and OCIs, shed light on the complexities faced by these individuals when it comes to filing taxes. Double taxation emerged as a significant concern, with 14.11 percent of NRIs from Australia, 13.10 percent from the UK, and 8.06 percent from the US citing it as their primary challenge. Additionally, accessing taxation documents from abroad posed a significant obstacle, with 12.10 percent, 9.05 percent, and 6.02 percent of NRIs from the US, UK, and Australia respectively expressing difficulties in this regard.
In recent years, India has witnessed a significant surge in its overseas diaspora, with approximately 32 million Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) spread across the globe. Among the prominent destinations for Indian expatriates, Gulf countries maintain the highest concentration, followed by nations like Singapore, the United States, Canada, and the United Kingdom. However, despite the growing diaspora, navigating the taxation landscape remains a challenging endeavor for NRIs and OCIs.
The survey also highlighted varying approaches to tax reporting among NRIs. While some opt to report only income earned in India (10 percent of US-based NRIs), others disclose both domestic and foreign income to Indian tax authorities (6 percent from Canada, 4 percent from the US and Singapore respectively). Additionally, a notable percentage of NRIs leverage tax-saving options available to them, with 7 percent from the UK and Australia, and 5 percent from Canada and Singapore utilizing these opportunities.
Despite the importance of filing tax returns, a minority of NRIs, including 5 percent from Singapore, 4 percent from the UK, and 2 percent from the US, admit to not filing returns in India. Among those who do, only a fraction choose to handle the process independently, while the majority opt to hire tax professionals or advisors for assistance.
The Double Taxation Avoidance Agreement (DTAA) in income tax serves to prevent the occurrence of double taxation, enabling taxpayers to fulfill their tax obligations in a single country. This facilitates increased savings on income and fosters a conducive environment for businesses to thrive. Moreover, it plays a pivotal role in deterring tax evasion by providing mechanisms to alleviate the burden of double taxation, thereby enhancing the attractiveness of the country for investment opportunities.
Beyond taxation concerns, the survey explored into the primary reasons for Indians residing abroad. Better employment opportunities emerged as a leading factor, cited by 11 percent from the UK and 9 percent from Canada, while higher education attracted 9 percent, 6 percent, and 5 percent of individuals from Singapore, Canada, and the UK respectively.
As the number of NRIs continues to rise, understanding and addressing the challenges within the taxation landscape remain imperative. SBNRI's survey underscores the necessity for continued efforts to simplify the tax process for NRIs and OCIs, ensuring smoother financial management for this significant demographic.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
E Paper
ADVERTISEMENT
.jpg)
Video
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login