Union Government found out that High Net Worth Individuals (HNWI) has been avoiding taxes to any country on their income generation making use of the previous Tax Laws. Hence, The Rules were tweaked to deny HNWIs or NRIs any scope for getting away with tax payment.
The New Amendment will come into effect from the financial year 2020-21 and that too if the Parliament approves it. NRIs who has been living in other countries since years will face its impact from Fiscal 2024-25 onwards due to their status of 'ordinarily resident in India'. From then, They will have to mention about foreign assets in the I-T Returns and pay tax as per their global income.
As per Budget 2020, Number of years required for an NRI to qualify for 'Ordinarily Resident' status has been increased from 2 years currently to 4 years out of the previous 10 years.