INTRODUCTION – How Does The Indian Govt Budget 2022 Affect NRIs?
Every year, the Union Budget of India is presented in the Parliament by the finance minister of India. This year, it was presented by Nirmala Seetharaman on 1st February 2020. The budget focuses mainly on five points: farmers, rural population, middle-class citizens, job creation, and MSMEs. Here we take a look at how the budget affects Non-Resident Indians (NRIs), seafarers, and other non-resident taxpayers in India.
Indian Govt Budget 2022
The Union Budget for the fiscal year 2022-23 was presented in the Lok Sabha by the Union Minister of Finance, Nirmala Seetharaman, on 1 February 2020. This is the first budget after re-election in the 2019 Indian general election. The key points of the budget are:
- – Achieving a $5 trillion economy by 2025
- – Doubling farmer income by 2022
- – New scheme to provide Rs. 72,000 annually to each farmer
- – Rs. 100 lakh crore investment in infrastructure over the next five years
- – Rs. 50,000 crores
- – Rs 3.5 lakh crore for the farm sector
- – Rs 2.6 lakh crore for the social sector
- – Rs 1.6 lakh crore for the defense sector
India’s gross domestic product (GDP) growth for the financial year 2022 is targeted at 9.22 percent, which gives a lot of confidence to non-resident Indians (NRIs) to invest in India.
Indian Finance Minister Nirmala Seetharaman tabled her fourth consecutive budget under challenging circumstances such as the high fiscal deficit, inflationary pressure, and rising unemployment across various sectors.
This year’s budget is shorter than usual, which sends the message that the Narendra Modi-led government has not tinkered with the existing taxation regime for NRIs or taxpayers. A few exciting financial developments are coming up in the next fiscal year. The first is the introduction of the e-rupee, which will make it cheaper and faster for NRIs to send remittances across borders. This will be a very positive change for the community.
The second change that will take effect starting from April 1 is the rollout of e-passports. These passports will have an electronic chip with security-related data encoded on them. This will help NRIs manage their entry and exit procedures more easily. The embedded chip in passports and linkages of data with India’s MEA and tax authorities can provide data to tax authorities with seamless accuracy, helping to detect any incorrect disclosure of residential status or incorrect reporting and taxation of foreign income by NRIs.
Impact of Indian Govt Budget 2022 on Seafarers
The Union Budget of India, 2022 is an important event in the economic calendar of India. This year’s budget is being presented against the backdrop of a slowdown in the global economy and significant challenges posed by the coronavirus pandemic. The government has announced a slew of measures to revive the economy and protect the vulnerable sections of society.
The budget is also expected to significantly impact the maritime sector, which is one of the key drivers of India’s economy. The government has proposed several initiatives to promote maritime trade and port development.
The Union Budget for the year 2022-23 has been presented in the Parliament by the Finance Minister. The main focus of this budget is on agriculture, rural development, the social sector, employment generation, and infrastructure. The budget also has a special focus on the maritime sector.
The government has announced various measures to promote the maritime sector. These include:
- – Providing Rs. 2,500 crores for port modernization
- – Allocating Rs. 10,000 crores for the Sagarmala project
- – Setting up an Rs. 1,000 crore Maritime Infrastructure Development Fund
New Residential Norms For NRIs, OCIs, PIOs
NRIs, PIOs, and OCIs will now be able to visit India for up to 119 days in a calendar year without the need for a visa. This is a reduction from the previous 181 days.
NRIs/PIOs who visit India for less than 182 days in a year are still considered Non-Resident Indians (NRIs), but they will now be subject to Indian taxation on their global income. The government has recognized that many people were taking advantage of the 181 days rule and carrying out substantial economic activities in India while still maintaining their non-resident status. This change will help ensure that more people pay their fair share of Indian taxes.
The budget proposes a change that will reduce the number of days an NRI or PIO can stay in India from 181 days to 119 days. This is being done to encourage more people to visit India and meet their family, friends, and relatives. If someone stays in India for 120 days or more in a financial year, they will be considered a resident of India.
This article provides a detailed overview of how the Union Budget for the fiscal year 2022-23 affects Non-Resident Indians (NRIs), seafarers, and other non-resident taxpayers in India. The article highlights the five points that the budget focuses on: farmers, rural population, middle-class citizens, job creation, and MSMEs. Non-residents in India can benefit from the various schemes and tax changes proposed in the budget.