A five-member committee has been formed by the Central Board of Direct Taxes (CBDT) to look into the tax implications of the migrating high net worth individuals (HNIs).
Background
As per the reports, 23,000 dollar-millionaires have left India since 2004, the highest in percentage terms among all countries. In recent times, there has been a trend of high net worth individuals are migrating from their country of residence to other jurisdictions.
Such a migration is a “substantial tax risk since they may treat themselves as non-residents for taxation purposes in the first jurisdiction even though they may have strong personal and economic ties with that jurisdiction".
Members and Responsibilities
The group formed on the recommendations of CBDT Chairman Sushil Chandra constitutes Pragya Saxena, joint secretary, foreign tax and tax research (FT&TR) as the chairperson. The other members are
i) Ms Pragya Sahay Saxena
ii) Mr Amitav, ADG-I
iii) Mr Zakir Thomas
iv) Mr. Rajesh Bhoot
v) Mr Navneet Manohar
The group will formulate India's position on various aspects related to taxation of migrating HNIs. I
The group will suggest a proposal to reduce tax leakage arising due to shifting of residency
Also, it will be interesting to see how the Black Money Act could be extended to HNIs who have generated substantial wealth in India and moved abroad
Expected Questions
For examining the taxation aspects of High Net Worth Individuals (HNWI), a Working Group has been constituted, with the approval of Chairman of
a. Central Board of Direct Taxes
b. NITI Ayog
c. Ministry of Finance
d. Ministry of External Affairs
e. Other than the above
Who among the following will head the Working Group formed to examine the taxation aspects of migrating High Net Worth Individuals (HNWI)?
a. Navneet Manohar
b. Zakir Thomas
c. Pragya Saxena
d. Rajesh Bhoot
e. Amitav Ghosh
