{"id":3473,"date":"2020-01-21T15:52:50","date_gmt":"2020-01-21T10:22:50","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=3473"},"modified":"2021-12-24T11:04:50","modified_gmt":"2021-12-24T05:34:50","slug":"union-budget-2019-20","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/union-budget-2019-20\/","title":{"rendered":"Important Points For NRI From The Union Budget 2019-20"},"content":{"rendered":"

Almost, in every budget government introduced some changes in the income tax<\/a> act which can be beneficial for you or disadvantage for you. For example, as we already know that from the finance act, 2018, the government notified the section 112A in which if an assessee is having a long term capital gain on sale of shares or equity-oriented mutual fund or unit of business trust, that would be taxation @ 10% flat on which STT has been paid on sale and chapter VI-A deductions shall also be not available to the assessee. Before this, it was exempted for all assessee and we saw a major downfall in the market the next day when the budget 2018 was announced.<\/span><\/p>\n

\"Important<\/p>\n

Likewise, there are some amendments that are also announced in budget 2019 for example, procedures by proposing the introduction of the faceless assessment system, levy of TDS<\/a> on cash payments above the threshold limit, and promoting digital payments. However, in this article, I will explain all the important changes made in the finance act 2019 which is relevant for Non-resident individuals. In case, if you want to know more about the general changes in union budget 2019, then you can refer to our previous article. So, let\u2019s begin.<\/span><\/p>\n

1. Tax on the gift received to Non-resident in India received from a resident of India<\/b><\/p>\n

Before the amendment, if a non-resident received any gift from a resident of India then such a gift was exempted in the hands of such Non-resident.\u00a0<\/span><\/p>\n

Normally, as per section 56(2)(x)<\/a> of the income tax act, 1961, where a person received any gift from another person and the market value of such gift exceeds Rs.50,000, then the value of such gift shall be taxable in the hands of recipient as the income from other sources. This section also specifies some of the exceptions on which this provision shall not be applicable.<\/span><\/p>\n

Although the gift received by NR from a resident was not mentioned in the exception of section 56(2)(x), still it was exempted till the date of 5<\/span>th<\/span> July 2019 on which the final budget 2019 was introduced by our finance minister.<\/span> Now after the amendment, if the NRI<\/a> is receiving the only gift and not any other income then also he needs to declare such income in his ITR and need to pay tax on that income.<\/span><\/p>\n

Now, the amendment looks quite simple, but there are some clarifications which are as follows:<\/span><\/p>\n