Income Tax Compliance for NRIs: The upcoming 2025 Budget aims to simplify income tax compliance for Non-Resident Indians (NRIs) by addressing key procedural challenges. Proposed changes include setting thresholds for Tax Residency Certificates (TRCs), offering flexibility in submitting Form 10F, expanding overseas payment options, simplifying e-verification processes, and enabling refunds to be credited to foreign bank accounts.
NRIs, who are taxed only on Indian-sourced income, face difficulties navigating India's tax system due to complex requirements. The Budget proposals aim to alleviate these burdens by making the tax process more accessible and efficient for the Indian diaspora.
Key proposals include:
- Thresholds for TRCs: Introducing a threshold for TRC requirements to ease compliance for smaller income amounts.
- Flexible Form 10F Filing: Allowing NRIs to submit past TRCs initially and current-year TRCs later, reducing delays.
- Expanded Payment Options: Enabling NRIs to make tax payments directly from overseas bank accounts.
- Simplified E-Verification: Allowing verification through foreign mobile numbers or email to enhance accessibility.
- Refunds to Foreign Accounts: Crediting tax refunds to foreign bank accounts, solving issues for NRIs without active Indian bank accounts.
- These measures are designed to streamline tax procedures and reduce compliance challenges for NRIs.
