Union Budget 2023- What Is In It For The NRIs?

While no major changes were announced in the Budget speech that would upset the country's non-resident population, many changes were made that could affect how NRIs invest or earn from Indian assets.

In an effort to align Indian foreign exchange regulations with the Income Tax Act, the government proposed taxing the issuance of shares to non-residents above fair market value. This will prevent unaccounted money from non-resident investors in a closely held company from being generated and circulated in excess of its fair market value.

It is proposed that the taxability of the consideration (share application money/share premium) for shares exceeding the face value of such shares be extended to all investors, including non-residents.

TDS on certain income paid to a non-resident is currently 20%, but the tax rate in treaties may be lower. It is proposed to allow the benefit of a tax treaty at the time of TDS on such income under Section 196A of the Act.
Regarding non-resident presumptive schemes, it is proposed to disallow carried forward and set off of loss computed according to books of account with presumptive income.