September 30 is deadline for NRIs to declare Indian assets

NRI-TAXES-1-678x381September 30 is the deadline for NRIs to declare their Indian assets, ahead of new rules aimed at targeting black money.

After the deadline NRIs will have to pay tax on income generated in India, as the new Income Declaration Scheme IDS 2016 states that each NRI has to verify the sources of income for all investments made in India.  If the source is not clear, the NRI may come under the purview of the Income Tax Act and it will be considered an undisclosed income and returns are to be filed under the IDS.

Jose Chacko a financial expert in Muscat said India aims to widen its tax base that will eventually lead to more social spend or even lower tax rates in future.

The benefits of declaration include no wealth tax on assets declared, no scrutiny or enquiry under the Income Tax Act or Wealth Act, and immunity from  prosecution