How Budget 2025 can help bring more NRI money back home
Budget 2025 approaches, Non-Resident Indians (NRIs) are keenly watching for reforms that could make India a more attractive destination for their investments. By addressing key challenges in taxation and simplifying regulatory processes, the budget has the potential to boost inward remittances and encourage NRIs to invest more confidently in India.
Simplifying TDS compliance
Tax Deduction at Source (TDS) compliance remains a complex issue for NRIs, particularly in property transactions. While resident Indians face a 1% TDS rate on property sales, NRIs encounter higher rates coupled with extensive filing requirements. Although applying for a lower TDS certificate is an option, the lack of strict timelines often leads to delays. NRIs are hopeful that the new budget will introduce a streamlined TDS process, aligning it more closely with regulations for resident Indians.
Leveraging DTAA benefits
NRIs often grapple with dual taxation on income earned abroad, despite India’s Double Tax Avoidance Agreements (DTAAs) with several countries. The application of these agreements remains complex. NRIs expect the budget to enhance clarity and provisions for incorporating DTAA benefits into TDS returns, reducing tax liabilities on income already taxed abroad.
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Simplified repatriation of funds
The current repatriation process, particularly for property sale proceeds, involves multiple compliance steps under FEMA guidelines. NRIs are advocating for reforms that
