Hyderabad: Hyderabad-based MYD Labs, a Department of Industrial Policy & Promotion (DIPP) approved startup that provides next generation, cloud-enabled tax compliance providing platform EZTax.in has launched its NRI Income Tax Hotline service to help growing Non-Resident Indian (NRI) population who are working abroad as well as expats in India. The company had been catering to NRIs for the last 18-24 months.
Through this hotline service, the company is expected to help them in achieving tax planning, saving, and overall tax compliance in India, in addition to filing their taxes. Studies in the past have shown that NRI tax compliance growth is not in pace with the IT filing growth that India saw for the past two years primarily due to lack of understanding in changes to Tax Act in India.
Suneel Dasari, CEO, EZTax.in told Telangana Today, “India’s overseas population is growing every year and is the largest in the world with 16 million people. Most of them aim to strengthen their ties with mother land in building their assets. But often they overlook at the tax implications of such assets. Typical NRIs maintain their bank accounts, investments into shares, fixed deposits, residential property and other assets in India. All of them who are earning income in India must file their taxes before Jul 31st of respective year unless their income in India is less than Rs 2.5 lakhs but are advised to file even in such situations if they do have fixed assets to maintain their tax records, failing which the penalty now stands at Rs 5,000 until December 31st and Rs 10,000 post that.”
He adds, “We are helping both resident Indians and NRIs in income tax filing for last two years, a growing segment of our business. But it is vital to have a year-round tax compliance for NRIs as the tax period differs abroad and the clients are increasingly diversifying their portfolio beyond traditional real estate into businesses and currencies. Our NRI Income Tax Hotline is a natural extension to serve this population on their concerns.”
Dasari said there is still ambiguity among many on international taxation. Tax regime is strengthening every day and regulations are becoming stringent. There is a need to improve awareness and provide access to the NRI community of platforms that address their tax compliance needs.
The hotline will offer free counseling to NRIs. EZTax.in has 90,000 user base today and of these around 4,500 are NRIs. The company plans to carry out roadshows in select metros. Telugu speaking States account for about 15 per cent of the NRI community and they mostly reside in the US, Canada, Australia and Middle East.
EZTax.in intends to address queries and concerns over tax exposure related to Double Taxation Avoidance Agreement, Tax Residency Certificate, property sale by NRIs, foreign tax credit, ESOPs, foreign assets in addition to expats working and living in India.