Budget 2016: NRIs without PAN not to be subjected to higher rate of TDS

Finance Minister Arun Jaitley in his Budget 2016 speech said that Non-resident Indians (NRIs) without PAN will not be subjected to higher rate of TDS. “Non-residents without PAN are currently subjected to a higher rate of TDS. Budget 2016 proposes to amend section 206AA of the Income-tax Act so as to provide that TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribed condition,” said FM Arun Jaitley.

“It is proposed to amend the relevant provision to provide that on furnishing of alternative documents, the higher rate will not apply,” the Budget says.

FM Jaitley in his Budget speech outlined the nine pillars on the basis of which he hopes to enhance India’s economic growth. From focus on agriculture to tax and financial sector reforms, here are the nine pillars that Jaitley spoke of to transform India:

1) Agriculture and farmer welfare with an aim to double farmers’ income in the next five years

2) Rural sector

3) Social sector including healthcare

4) Educational skills and job creation to make India a knowledge based and productive economy

5) Infrastructure investment to enhance quality of life

6) Financial sector reforms

7) Governance reforms and ease of doing business

8) Prudent management of government finances

9) Tax reforms to reduce compliance burden

Jaitley said that Indian economy is resilient amidst the current global economic turmoil. “Global economy is in a serious crisis. Financial markets have been battered but Indian economy has held its ground firmly.”

“IMF has hailed India as a bright spot. Let us look at our achievements compared to the last three years of the last government. We inherited an economy with low growth and high inflation,” Jaitley said.

“We have bridged the trust deficit created by the previous government,” Jaitley added.

Source: The Economic Times

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