Amidst the rising challenges for filing taxes as NRIs, Mudit Vijayvergiya of SBNRI said, “While the process of filing taxes for NRIs has been subjected to multiple revisions, aimed at making it more streamlined and simpler, the proliferation of tax-related issues has only grown further. Having witnessed NRIs grapple with the complex nuances of the taxation process, it’s paramount to partner with experts who can guide them through this journey, mitigating any sort of disparities.”
Against the challenging taxation backdrop, the survey also unveiled that 10% of US-based NRIs, followed by 7% from Australia, Canada, and Singapore respectively report only the income earned in India to the Indian Tax Authorities. On the contrary, 6% from Canada, 4% from the US and Singapore, respectively, and 3% from Australia revealed that they reported both income earned in India and abroad to the Indian Tax authorities.
While filing taxes is a plaguing issue for NRIs and OCIs, the ascent of tax-savings option is a lucrative opportunity for every NRI. Approximately, 7% of the UK and Australia-based NRIs respectively, along with 5% from Canada and Singapore alike, leverage tax-savings options available to them. In contrast, only 2% from Australia, 4% from Canada and Singapore, respectively, and 6% from the UK are unaware of the tax-savings options.
Navigating beyond the fragmented tax landscape for NRIs, the survey also revealed that 5% of NRIs from Singapore, 4% from the UK, and 2% from the US don’t file tax returns in India. Amongst the ones that do file tax returns in India, only a fraction of them choose to do it themselves by filling out forms. While the majority, namely 12% from the UK, along with 10%, and 7% from the US and Singapore respectively hire a tax professional or advisor to do the same on their behalf.
With an increasing number of NRIs, SBNRI’s survey also explored the primary reason for Indians living abroad, with 11% from the UK, and 9% from Canada, followed by others choosing to live abroad primarily for better employment opportunities. Additionally, higher education appeared to be the primary reason, with 9%, 6%, and 5% from Singapore, Canada, and UK, respectively, choosing the latter.
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