India is tightening tax laws for NRIs & foreign income! If you earn abroad, invest overseas, or remit money—these changes WILL impact you! Here’s what you MUST KNOW before the new tax rules hit! 👇🧵 1. NRIs Will Be Taxed as Residents at 120 Days (Not 182 Days!) 🔹 Old Rule: NRIs were taxed as residents only if they stayed in India for 182+ days. 🔹 New Rule: If an NRI ➟ stays 120+ days & earns ₹15L+ in India, they will be taxed as a Resident! ➟ More NRIs will now be taxed on global income 💰 ➟ Be careful with your India travel plans! Staying too long = Higher tax liability! 🚨 2. NRIs’ Global Income is Now Under Tax Radar! 🔹 Earlier: Only Indian income was taxed for NRIs. 🔹 Now: If you qualify as RNOR (Resident but Not Ordinarily Resident), ➟ India may tax your foreign passive income! ✅ Which foreign incomes will be taxed? ➟ Interest earned from foreign bank accounts 💵 ➟ Dividends from foreign stocks 📈 ➟ Capital gains from selling foreign assets 🏠 🔹 If you thought your foreign earnings were safe, think again! 3. Foreign Assets & Bank Accounts Must Be Reported! 🔹 New Rule: NRIs & residents must declare all foreign assets & bank accounts in tax filings. ✅ What must be disclosed? ➟ Foreign bank accounts 💳 ➟ Offshore real estate 🏠 ➟ Foreign stocks, ETFs, & mutual funds 📊 ➟ Cryptocurrency holdings on foreign exchanges 🚀 🚨 Penalty for hiding assets? 300% of tax due + Criminal Prosecution! 4. Foreign Remittances Will Face Higher Scrutiny! 🔹 LRS (Liberalized Remittance Scheme) is under stricter tracking! ➟ Sending ₹7L+ abroad? Higher TCS (Tax Collected at Source)! 💸 ➟ Investing overseas? Indian authorities will track your money. ➟ Foreign education & medical remittances still get lower TCS, but with more documentation. 🔹 NRIs, plan your remittances wisely! Extra taxes can eat into your savings. 5. Foreign Businesses with Indian Clients Now Taxable! 🔹 New Significant Economic Presence (SEP) Rule: Even if a company has NO physical office in India, it may be taxed if it serves Indian clients. ✅ Who is affected? ➟ Foreign SaaS & IT companies with Indian customers 💻 ➟ E-commerce platforms selling to India 🛍️ ➟ Consultants & freelancers earning from Indian clients 📊 🔥 Dubai or Singapore won’t protect you anymore! Your business may still be taxed in India! 6. Stricter Rules for Claiming DTAA (Double Tax Avoidance Agreement)! 🔹 NRIs using DTAA benefits must now submit MORE documentation! ✅ New Requirements: ➟ Report all foreign taxes paid & refunds received ➟ Declare DTAA-covered income in a prescribed format ➟ Any misuse of DTAA benefits = Penalties & legal action! 🔹 The loopholes in DTAA are closing fast! Ensure full compliance! 7. Foreign Crypto & Offshore Investments Now Taxed Differently! 🔹 If you invest in Bitcoin, Ethereum, or any crypto via a foreign exchange, you must declare it! 🚀 ✅ New Tax Rules: ➟ Crypto transactions with foreign exchanges MUST be reported. ➟ Foreign mutual funds, ETFs, & REITs face new capital gains tax rules. ➟ If you hold foreign stocks (Apple, Tesla, Amazon), taxation rules have changed! 🔹 NRIs investing abroad? Track these new tax rules or risk massive fines! 8. Foreign Pension & Retirement Accounts Now Under Tax Lens! 🔹 Have a 401(k) in the US, Superannuation in Australia, or EPF in UAE? ✅ New Tax Rules: ➟ Withdrawals from foreign retirement accounts may now be taxed in India! ➟ DTAA benefits apply ONLY under strict conditions. ➟ NRIs must disclose all foreign pension accounts when filing taxes. 🔹 Returning to India? Plan your withdrawals carefully to avoid higher taxes! 9. Returning NRIs Get Special 2-Year Tax Relief! 🔹 If you return to India, you get tax benefits—but only for 2 years! ✅ Special Provisions: ➟ Foreign income earned before return = Not taxed in India. ➟ You get RNOR status for 2 years to adjust your tax status. ➟ After 2 years, your global income may be taxed in India. 🔹 Plan your return home wisely! The tax impact could be HUGE. 10. Heavy Penalties & Criminal Charges for Non-Compliance! 🚨 ❌ Hiding foreign income? ➟ 300% penalty + Jail time 🚔 ❌ Failure to disclose foreign assets? ➟ Criminal charges under anti-black money laws 🔥 ❌ Foreign transactions above ₹50L not reported? ➟ Your income may be seized! 🚀 India is cracking down on tax evasion! Stay compliant or face severe consequences! 💡 Final Takeaways: 🔹 NRIs staying in India for 120+ days may be taxed as residents! 🔹 More foreign income will now be taxable in India, including offshore investments! 🔹 LRS remittances & foreign crypto transactions will face strict tracking! 🔹 Foreign businesses earning from Indian clients may now be taxed in India! 🔹 If you don’t report your foreign assets, prepare for MASSIVE penalties!