Union Budget 2020

The stock market reaction to the Budget ( BSE Sensex down - 1049 Points) speaks volumes about how lacklustre it is

Tax payers have the option to choose between the existing income tax regime and a new regime

If you had some exuberance about the new option with lower rates, please remember that with one hand, the government gave and with the other hand, took away manifold more ( 70 Exemptions) 

Attaching a Calculator https://bit.ly/2RPy984 (Hope you like it)

"Show me the other option" is the standard refrain from HRs as they speak to recruitment agencies like CAJobPortal.com w.r.t. candidate profiles

And now , even practicing CAs will have to face the same statements from clients w.r.t. taxation -  "Show me the other option" :) 

While it's a no-brainer that the New Regime sans any exemption will be worthwhile for anyone, you can plug in your specific numbers and see for yourself 

My only concern is if in the coming years, the New Option remains the only option , as we move towards a Direct Tax Code (DTC) regime. 

Also, since CAJobPortal.com has a lot of clients in Dubai, we wanted to bring the clarification about the apprehension that if Indians are living in a tax-free country like UAE, they will have to pay taxes in India . 

There is no cause of worry

Government has redefined Non-Resident Indians (NRIs) as those who stay abroad for 240 days and said a person who is a resident of no country and is out of India for as many days just to maintain the NRI status will be taxed back home.

To be categorized a non-resident, an Indian now has to stay abroad for 240 days, against 182 previously.

The second rule is more deadly: a non-resident Indian, who is not taxed in the foreign country, will become taxable in India

Only those individuals who are staying outside India just for the purpose of maintaining 182 days in order to claim NRI status to avail the benefits will no longer be able to do that. It means individual who cannot prove his residency of one particular country and is not a tax resident of one particular country will be assumed to be a tax resident of India and his worldwide Income will be taxed in India. However, a person holding a valid residence visa with economic relevance to that country need not worry about that. He will have to pay tax only on the income earned in India and no tax on his global income.

The loophole is being plugged only for Individuals who are actually carrying out substantial economic activities from India manage their period of stay in India so as to remain a non-resident in perpetuity and not be required to declare their global income in India

Thanks & Regards!!

Sonia Singal : CA Job Portal