Press Release: Modi fears entering US White House,claims NRI’s

Chicago. Prabhu Sinha. The 2014 Indian Lok Sabha election will select 543 members , to the national Parliament. The new Lok Sabha will elect the Prime Minister, only BJP and AAP, seems to have chosen their leader for the Prime Minister’s post. BJP’s Narendra Modi and AAP Arvind Kejriwal, both have one thing in common-fighting the Grand Old Party of Indian National Congress. While Modi has introduced the American style of Politics, Congress still empowers the Parliament Style of Politics, the Prime Minister to be chosen by elected Members of Parliament.
Seven in ten Indians are dissatisfied with the way things are going in India today, are the historic examples of a vibrant Democracy and the aspirations of the Young India emerging, with thumping demands to challenge China, United States, Canada, England and the G-8 Club of Nations. Non Resident Indians are, recently conducted a Phone Poll, to determine their issues and concerns, with 62 % prefer Arvind Kejriwal over Rahul Gandhi and Narendra Modi, to lead India’s 700 million people for better in changes and their expectations. Just 57% NRI’s are satisfied by UPA Government of Dr. Manmohan SIngh, desiring a more aggressive leader Rahul Gandhi to cope up with modernization of China. Modi’s Mission for 2014 has the support of 44% as a national leader, but short on all fronts as a International Leader, much in demanding of the India, as a emerging power.
Overseas BJP, Shiromani Akali Dal, Indian Overseas Congress and Aam Admi Party are the major Foreign Cells of the Indian Political Parties, here in the USA, Canada and England. Overseas BJP, while happy with the Ambassador Nancy Powell’s call on Modi in Gandhinagar, are in political oblivion in reference to Local Congressman, US Senators, Canadian and England Parliamentarians. Aam Admi Members, have successfully ran NRI enrollment campaign, financing New Delhi Elections and winning the confidence of NRI community at large. Indian Overseas Congress, the oldest Foreign Cell of Indian National Congress is well entrenched with the Republican and Democrats in US, Liberal, Conservative and NDP, in Canada and spearheading campaigns in England with Conservatives and Labour Party.
Post 2014 Lok Sabha election, opinions were solicited in the NRI Poll, Liberal Ajit Sandhu feels India Prime Minister Dr. Manmohan Singh’s political weakness is going against the Congress Party and will cost it dearly, Conservative Gurmant Sidhu, echoes Aam Admi Party’s agenda of corruption, which will favor the tally of 100 seats of Aam Aadmi Party, paving the way for a New Coalition Government in South Block New Delhi. NDP member Jivan Sharma, calls for Modi’s aggressive campaign as a positive election strategy for gains in Madhya Pradesh, Uttar Pradesh and Maharashtra, where Right Wing Hindus have a majority.

Aam Admi Chairman Sunil Mishra feels Rahul Gandhi, has been kept too long under her Mother Sonia Gandhi and his ”inner-outer campaign” is going against him. IOC President Vikram Bajwa on the recent US diplomacy on Modi commented ” its like the issue in Ukraine, where the Leaders themselves are confused, while Modi himself is fear of entering the White House”, he is best suited for State Politics, not National. Modi cannot face the International Press in New York or Washington DC, said Bajwa and Executive Member Dr. Jayant Patel. Shiromani Akali Dal member Harjinder Dhillon, fears the Punjab ‘Drug Problem”, will diminish the expected wins in Punjab.

NRI held for smuggling gold worth Rs 80 lakh in Hyderabad

An NRI, who allegedly tried to smuggle 2.4kg gold worth Rs 80 lakh, was arrested by Customs authorities at Rajiv Gandhi International (RGI) Airport at Shamshabad here.
The Customs officials intercepted Mohammed Abdul Mateen, who arrived here last evening by a flight from Saudi Arabia via Muscat.

After subjecting him to checking, it was found that he was carrying 2.4 kg yellow metal in the form of an ashtray which was gold electroplated with 98.5 per cent purity, Customs officials said.

How is an NRI’s foreign salary taxed?

Many non-resident Indians (NRIs) want to keep their earnings in India, though they may be earning abroad. In case of an NRI, only income accruing in India or received in India or deemed to accrue in India is taxable in India, unlike in the case of a resident, whose worldwide income is taxable in India. Therefore, for an NRI who earns abroad, it is very important to ensure that her salary is not received directly in India, so that it is not taxable in India. Usually, one opens a bank account abroad in which the salary is first deposited before being remitted to India. A recent tribunal decision has eased the problem significantly for NRIs who may want their salaries transferred to India.
The decision was in the case of a crew member of a foreign ship who was hired by a Singapore ship management company to work on ships plying on international routes. The contract was issued by the Singapore company’s agent in India. The crew member was an NRI for the relevant year based on the number of days stayed in India. The salary was remitted directly by the company from its account in Singapore to the NRI’s non-resident (external) account with a bank in India.
The tax officer took the view that the salary was taxable in India, as the taxpayer was a resident of the country for the following reasons: he had other taxable income of pension and interest in India; the salary accrued in India since the contract was signed in India; and the salary was received in India since it was credited directly to a bank account here. The tribunal, however, held that merely because the taxpayer had some other taxable income in India did not mean he was a tax resident of India. Income accrued in India of non-residents is taxable in India, but that does not make them residents of India. Moreover, the taxpayer was not an Indian resident based on the number of days stayed here, which is the test for residence. The tribunal rightly held that signing of the contract in India did not mean that the salary accrued in India. The place where the services were rendered was the place of accrual for the salary—since the services were rendered abroad, the salary, too, accrued outside India. Addressing the tax officer’s contention that the salary was taxable in India as it was received in India, the tribunal took the view that “receipt” has to be considered in the context of the first occasion when the taxpayer gets control of the money—real or constructive control. Therefore, what is material is the receipt of income in its character as income, whether by the taxpayer or by his agent. There cannot be more than one receipt of income, and the same income cannot be taxed on multiple occasions.
In this case, the taxpayer had a right to receive his salary in Singapore, the location of his employer, and it was as a matter of convenience that he chose to have the money transferred to India. The money was at his disposal in Singapore, and it was in exercise of this right to dispose of the money that it was transferred to India. The tribunal drew a fine distinction between receipt of an income in India and receipt of an amount in India, holding that the salary amount was received in India but the salary itself was received in Singapore.
The tribunal placed reliance on a Madras High Court decision, which had taken a similar view in the context of a foreign pension transferred to India. It held that the foreign salary income was not taxable in India, though remitted to India.
Many NRIs want to remit their entire salaries to India, but have to necessarily open a bank account abroad to save themselves from the Indian tax net. This decision is helpful for NRIs who may have requested their employers to directly remit their salary to India, without opening a bank account abroad. Whether this decision will be accepted by the tax authorities, or whether they will choose to litigate this issue all the way up to the Supreme Court, as they normally do, will be known later.

Should the taxability of an income depend upon where the bank account is opened for this purpose? Double taxation treaties rightly grant the benefit of an exemption based on different conditions, and not upon which bank account the amount is credited to. Since tax treaties override domestic tax laws in India, a taxpayer who has the advantage of a tax treaty can opt for it, and not pay tax on such salary remittances to India by his foreign employer. Access to tax treaties requires a taxpayer residency certificate of the foreign country, which is at times a difficult or expensive proposition. Further, India may not have tax treaties with certain countries. Many taxpayers, particularly crew members of foreign ships or foreign airlines, cannot get the benefit of tax treaties, as they are not residents in a particular country for a long period. To encourage such taxpayers to remit their entire salary to India, the Central Board of Direct Taxes should consider issuing a circular accepting this tribunal decision, so that they are not put through the hassle of litigation, just because they have been loyal citizens, choosing to have their entire savings transferred to India.