Letter to BS: Tax on remittances is absurd as the source is already taxed

This refers to the article “Remittances abroad could face double tax” (February 12). It is irrational to tax remittances sent out under the Liberalised Remittance Scheme. It’s a backward step. Many people send out remittances to their family members and children abroad as gifts on birthdays/anniversaries and other occasions. To impose tax on these remittances is absurd as the source of these funds are already subject to taxation. To say that after paying tax on remittances the tax payer can seek a refund makes no sense. If that is so, why double tax them in the first place? On the one hand, the government wants to simplify tax rules, while on the other, it has introduced a measure that will complicate it. It’s true that there is a huge shortfall in revenues because of the slowdown in the economy, but that is no reason for the government to introduce absurd measures and make taxpayers’ life more difficult. This proposal needs to be revisited.

Arun Pasricha, New Delhi

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