ASSOCHAM moots FM for amending IT Act for overseas senior citizens

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) has proposed the government to make announcement before the Pravasi Bhartiya Divas (PBD) amendment in the Income Tax Act that those senior citizens who come back and bring their wealth from overseas will be taxed only on the income earned in India and not on their global income.

The change would encourage these senior citizens to bring their overseas wealth back to India and this would also help in solving the issue of 'Black money' and create a more conducive investment atmosphere.

In a communication to Finance Minister Arun Jaitley, ASSOCHAM has stated that the post-independence era has shown that a sizeable population of Indian who have become Overseas Citizen of India (OCI) / Persons of Indian Origin (PIO) has contributed significantly to the overall development of the country.

Keeping in view the contribution of OCIs / PIOs in the development of the country mentioned here in above, ASSOCHAM has suggested that the provisions of Taxation Law should be amended so as to encourage the OCIs / PIOs to return and resettle in India by taxing them only on their Indian income and giving them exemption from payment of tax on income earned outside India.