Legal Rights: NRIs to Get Tax Concessions
The government of India is all set to extend the legal rights of NRIs pertaining to tax benefits. To promote charity and social welfare, the government has decided to give tax concessions to NRIs. Indians residing in the US can now benefit from tax relaxations on the investments they make in social welfare projects in India.
The Ministry of Overseas Indians has taken this initiative under the India Development Foundation for Overseas Indians. As per the new rule, NRIs willing to build schools or primary health centers or other infrastructure in their native place in India will get tax exemption.
Legal Rights: Overseas Indians to Get Tax Dispensation
To give a new dimension to the legal rights of NRIs, the government has planned the phase-wise registration of the foundation in the US, the UK, the Gulf and other countries. Mr. Vayalar Ravi, the Overseas Indian Affairs Minister, said that the registration process has already started in the US and will come into effect in the next three months.
The Minister further added that the focus will be on millionaires, rich NRIs and average Indian migrants. The project aims to encourage them to contribute towards India’s rural infrastructure development. Also, a minimum contribution of $1,000 per year is expected from an average NRI.
Further, Mr. Ravi said that the objective is to mobilize the resources of overseas Indians. The funds will be used mainly for the construction of hospitals, health centers and primary school buildings and to encourage micro credit and self help groups.