More than ever, the indian government is after nri funds. Nothing is off-limits, even offshore corporations and foreign financial accounts. india can now tax your overseas bank interest, stock dividends, capital gains, and worldwide passive income provided you meet the requirements to become an RNOR. Additionally, the new laws stipulate that the minimum penalty for failing to register your overseas assets is 300% or possibly jail time. Now, even operating a business abroad and receiving money from indian customers will be subject to taxes. According to the new tax laws, your business may still owe taxes even if it does not have an office in India.

There are increasingly stringent documentation requirements for NRIs seeking tax exemption.  You might be penalized for just one error.  For tax purposes, overseas investments, such as stocks, cryptocurrency, and even pension withdrawals, must now be reported to the indian government.  It will be another headache if NRIs are considering any reliefs under DTAA guidelines because you will need to submit additional documentation.  Criminal charges will be brought against anyone found to be utilizing it as a tax evasion loophole. NRIs only get respite after they go back to India.  The first two years of your return will be tax-free, but after that, all of your worldwide income will be subject to taxes.

You must therefore carefully consider your options if you intend to return home after establishing a business or other revenue streams overseas.  Every transaction, asset, and rupee you make overseas is monitored by the government.  If you overlook a detail, you risk severe penalties, account suspension, or worse, criminal prosecution.   This turmoil simply makes life worse for NRIs.
 
 

 
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G GOWTHAM

12/03/2025 11:06 AM