India Budget 2020 for NRIs: Everything You Need to Know| North Loop Official Blog
North Loop Logo
North Loop
16 Feb 2020

India Budget 2020 for NRIs: Everything You Need to Know

thumbnail for India Budget 2020 for NRIs: Everything You Need to Know
Credit: North Loop

Budget 2020 for NRIs

The annual budget was announced by the Indian Finance Minister Nirmala Sitharaman on February 1st.
Here are some of the big takeaways on the impacts of the 2020 budget on NRIs:

NRI Definition Change

The most consequential announcement was the changing of NRI status - an Indian must reside for 240 days abroad to qualify as an NRI, rather than the previous 181. In addition to this, the individual MUST be a resident of another country. This ‘residency’ rule impacts those who were abroad for 6 months of the year and qualified as NRIs but had no ‘residency’ in another country. So if you are a resident of UAE/USA/UK etc, you don’t have to worry. Also it is important to note that foreign income will not be taxed if you are an NRI - only income earned in India as per Indian tax rates.
Profile image2: NRI Definition Change
Credit: North Loop

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

DDT is Abolished

The Dividend Distribution Tax (DDT) has been abolished and dividends will now be taxed in the hands of investors.
TDS (Tax Deducted at Source) will be 10%, which will be deducted by mutual funds if the dividend to be distributed is more than Rs 5,000 in a financial year to an investor.
It is important to note that this 10% TDS only applies to dividends, and not redemptions on mutual funds for resident Indians. For NRIs, the TDS on redemption continues to remain the same.

Bank Deposit Insurance Increase

The budget also announces the increase of bank deposit insurance from Rs. 1 lakh to Rs. 5 lakh to assure depositors about the safety of their funds.

North Loop NRI Banking

Sign up for a 3-in-1 NRE/NRO/PIS Account with North Loop in 5 minutes. No fees, zero-balance and remit to India for free. Sign up here.!

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.