(a) whether the Government has taken steps for improvement in tax collection from
the Non-Resident Indians (NRIs);
(b) if so, the details thereof and the manner in which collection is proposed to be
improved; and
(c) the success achieved so far thereon?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b) Madam, the tax collection from non-residents are being improved through collection
out of arrear and current demand and regular monitoring of advance tax collection. The
withholding tax provisions relating to non-residents have also been strengthened by amendment
of Section 195 of the Income-tax Act, 1961, by Finance Act, 2012. Further, the Government is
taking following steps to improve tax collection from non-residents, including Nan-Resident
Indians (NRIs): I. Efforts being taken to widen the tax base through:-
# Monitoring the activities of Liaison Offices;
# Monitoring the Foreign Investment Promotion Board proposals;
# Verification of the tax deducted at source in respert of remittances made abroad.
II. Investigating the cases of mergers & acquisitions, direct & indirect transfer of
capitals having revenue potential.
III. By emphasizing the importance of payment of taxes through interactive seminars.
IV By taking coercive action, whenever required, as prescribed in Law.
(c) No separate details of collection in respect of NRIs are maintained. However, the details
of total tax collection by the Directorate General of International Taxation and Transfer
Pricing, dealing with taxation of non-residents, are as under:-
S.No. Financial Year Net collection (Rs. In crore.)
1 2009-10 16197.82 2 2010-11 22484.99 3 2011-12 27442.50