199. NRI's may be taxed on

world wide income in India if

stay exceeds 59 days!

Q: Hello I am a Indian Citizen residing and working in the UK. UK have changed the tax laws in April 2008 where by any resident of UK have to pay UK tax on his world wide income on arising basis . I have paid UK tax for the year 2008-2009 and 2009-2010 for the income generated in India although being an NRI I am exempted from paying tax in India (NRE Account). Being an NRI Can I invest in tax saving schemes in India ? If Yes would I Be Exempted for paying tax in UK on the Income earned ? Secondly the Indian Government is planning to tax NRI from April 2012.I have invested some money in tax saving schemes in UK ( ISAS), would I have to pay tax in India on the interest earned although it is tax free in UK ? Thanking you in anticipation. Bellarmino Gomes A. The tax changes that you refer to are probably the changes to India's new direct tax code that will affect nri's Basically what is proposed is that Nri's who stay in India for more than 59 days in a year or more than 4 years prior to the financial year will be considered residents and taxed on their world wide income. Under the current system they could stay in India for up to 181 days in a year without any tax liability on income earned abroad. Starting from the 2011 -2012 taxation year, you will probably have to think twice about how long you wish to stay in India if the proposed changes become law.