Now those who are tax evasion of NRI, the tax department is going to crack the income tax department. The Income Tax Department has prepared for this. Many NRIs have also received notice about this. In fact, many Indians are saving tax by becoming 'non-resident Indians'.
According to the sources, income tax department has started exploring 4 to 6 years old record of such people. According to the rule, when an NRI earns money outside India, no tax is levied on its income, but if a person earns money abroad in India, then he has to pay tax on this income. Many NRIs have received notice that the tax assessments of their last five or six years are being re-opened. He has also been asked to share photo copy of the passport.
If any Indian citizen remains abroad for more than 182 days, he gets the status of an NRI. Similarly, if any Indian question remains more than 60 days in a year or more than 365 days in the last four years in a year, then it gets the status of 'resident'.
To save tax, many Indians continue to move in India and abroad in such a way that they get NRI status. The Income Tax Department will examine all such cases and will see whether this is not being done for theft of tax.
It is worth noting that the Income Tax Department is working on several issues to prevent tax evasion in the country. Income Tax Department has revised TDS certificate ie Form 16, it has added various things including income from the house and the award received from other employers. In this way, it has been made more comprehensive so that the taxation should be restrained from avoiding taxation.
It will include different tax-saving schemes, tax deductions in terms of investment in tax saving products, different allowances received by the employee, and different information in respect of income received from other sources. Form 16 is a certificate issued by the employer, in which the details of the TDS (tax deduction at source) of the employees is done. It is issued in mid-June and is used for filling income tax returns.
The revised form notified by the Income Tax Department came into effect on May 12, 2019. This means that income tax return for the financial year 2018-19 will be filled on modified form 16. In addition to other things, the revised form 16 will also include the details of deduction in interest in the savings accounts and deduction of deduction and surcharge (where applicable) in the savings accounts.
