INVC NEWS
London : The British PM Rishi Sunak has introduced another stringent law. The tax exemption available to NRIs (Non-Resident Indians) living in Britain on income from bank FD, stock market and rent in India has been reduced from 15 years to 4 years. From the fifth year of residence in Britain, NRIs will have to pay 50 percent tax on their income in India.
Till now, NRIs had to pay tax only on income received in Britain for 15 years. The new law will become effective from April next year. London-based tax consultant Saurabh Jaitley said that after the new rule, about 50 thousand out of five lakh NRIs living in Britain have planned to shift to Dubai. The personal tax rate in Dubai is zero and the corporate tax is only 9 percent. Estate tax in London is also 40 percent while in Dubai there is zero estate tax on NRIs.
According to Jaitley, after Sunak’s new law, NRIs are becoming disillusioned about doing business in Britain. In the last five years, 83 thousand 468 Indians have given up Indian citizenship and taken British citizenship. This is the highest in any country in Europe. Earlier, by 2022, 254 Indian wealthy people had taken British citizenship under the Golden Visa Scheme.
