Below image is being circulated in the internet and is creating lots of heat for NRI. On further search in the internet it was found that it is a hoax. Similar news was circulated for the year 2009-2010.

Please check this link for the previous one. The new mail (image) is same except few insertion to make it related to current events. (About 10% surcharge, Pravasi Bhartiya Divas etc..)

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http://www.qatarliving.com/node/456015

5% TAX ON FOREIGN INCOME FOR NRI STARTING 2009 -10

Government of India today announced imposition of a flat 5% tax on all NRIs  over their world-wide income. Income that is already taxed in India has been  kept out of the purview to avoid double taxation. No double taxation benefits  would be available for this 5% tax, meaning even if you are paying tax on your  income in a country with which India has double taxation agreement, the benefit  would not be allowed against this 5% tax. All those Indians who are holding  Indian Passports and have been out of the country for more than 180 days during  the year are under this requirement. Income proof would have to be submitted in  form of employer certificates, foreign tax filings etc. Indian government is  also coordinating with Australia , Europe, America , UAE and other countries on  collecting Income data for its citizens as part of data sharing initiative on  terror prevention measures.

This has been hailed as bringing in compulsory participation in development  of India from Non resident Indians.. This means NRIs can no more just continue  to retain their Indian citizenship without paying taxes in India . Though it may  not be favorable in view of the NRIs who already bring substantial forex in form  of remittances and Investments. This is bound to cause a lot of heart burn for  the Indian community residing outside..

This is expected to generate ~10 Billion INR tax collection for the  government in the year 2009-10.. For more information on this rule, tax filings  and forms visit http://www.incometax...

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