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Feb 15, 2025 TDS to capital gains tax: What impact new tax Bill will have on NRIs

Income Tax

The Income Tax Bill, 2025, tabled in Parliament on Thursday, introduces changes for non-resident Indians (NRIs), particularly regarding capital gains, tax deducted at source (TDS), and tax recovery measures. “The Bill introduces more stringent measures for tax recovery from non-residents: Enhanced powers for tax authorities to access electronic records, including emails, social media accounts, and online banking information during searches. This aims to improve tax compliance and prevent evasion by leveraging digital footprints,” said Pallav Pradyumn Narang, partner, CNK (a legal firm). Under new provisions NRIs earning Rs 15 lakh or more annually in India will be classified as residents for tax purposes.

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