How will the Budget 2024 changes affect NRIs?
NRI) community.
#Budget 2024 with ET
Budget Highlights: Your 2-minute guide
What's cheaper and what's costlier? Here's the list
New slabs announced in new income tax regime
The new budget introduces several measures to attract NRI investments into Indian markets. The government has proposed easing Foreign Direct Investment (FDI) and Overseas Investment (OI) norms. This includes promoting the use of the Indian Rupee for overseas investments, thereby making it easier for NRIs to invest in India.
The holding period for long-term capital assets like bonds, debentures, and gold has also been reduced from 36 months to 24 months. This change is intended to encourage NRIs to invest more in these financial instruments, offering them quicker returns on their investments.
Taxation Reforms in Budget 2024 for NRIs
Recognizing the complexities NRIs face with taxation, the budget has proposed a simplification and rationalisation of capital gains. Effective 23 July, the government will implement a revised tax structure for capital gains on investments. Short-term capital gains on listed equity shares and equity-oriented mutual funds will be subject to a higher tax rate, increasing from the current 15% to 20%. Other short-term capital gains will continue to be taxed according to the income tax slab rates that apply to individual taxpayers.
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Long-term capital gains
In a simultaneous move, the tax rate on long-term capital gains for listed equity shares and equity-oriented
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