A UAE resident supports a legal fight to restore equal tax treatment for NRIs in India
Indian expats in the UAE and other countries are facing higher taxes on property sales back home after the Indian government revoked the indexation benefit on long-term capital gains. To challenge this disparity, Sreejith Kuniyil, a UAE-based chartered accountant, has taken up the cause to advocate for NRIs and support a legal petition filed in the Kerala High Court, reported gulfnews.com.
The issue arose when India amended its tax law in July 2024, allowing residents to choose between two tax rates—one with indexation at 20% and another without indexation at 12.5%. However, NRIs were excluded from this provision, as the amendment specifically mentioned “resident” instead of “citizen”, leaving expats at a disadvantage.
NRIs demand equal tax rights as Indian residents after losing the indexation benefit on property sales
Sreejith argues that NRIs and residents are treated equally under FEMA (Foreign Exchange Management Act) when purchasing properties, but this equal status does not apply when selling, leading to unfair taxation for NRIs.
To address this, he helped an Indian expat in Kuwait, who faced a huge tax burden, file a petition against the Union of India in the Kerala High Court. The petition calls for the restoration of tax equality and urges the government to correct the disparity in the upcoming budget session.
The case is currently under hearing, and expats are hoping for a favorable decision that grants NRIs the same tax benefits as Indian residents.
***********************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken a small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, running a news website requires finances. While every contribution, big or small, will make a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com