A recent survey has highlighted the complexities of tax compliance for NRIs and OCIs.
The survey conducted by SBNRI, a comprehensive investment platform for NRIs and OCIs, stated that 14.11% NRIs from Australia, followed by 13.10% and 8.06% from the UK and the US, respectively, feel that double taxation is the biggest challenge when it comes to filing tax returns as an NRI and OCI.
At the same time, 12.10%, 9.05%, and 6.02% of NRIs from the US, the UK, and Australia found accessing taxation documents from abroad to be the most challenging concern for filing taxes as NRIs.
According to the survey findings, 10% of NRIs based in the US, followed by 7% from Australia, Canada, and Singapore, respectively, report only their income earned in India to the Indian Tax authorities.
Conversely, 6% from Canada, 4% from the US and Singapore, respectively, and 3% from Australia revealed that they report both income earned in India and abroad to the Indian Tax authorities.
Despite the Indian government's efforts to simplify taxation for NRIs, challenges persist within the tax framework. NRIs are required to file income tax returns in India if they have earned income within the Indian territory during the relevant financial year.