One often reads newspaper reports about some prominent businessman having taken up foreign citizenship, mostly of some obscure country offering citizenship to persons who invest a large sum of money there. The speculation generally is that this has been done to obtain income tax benefits. Is this really true? Under Indian income tax law, the scope of taxability of income is based on the concept of residence, and not on the concept of citizenship.
- Neha Malhotra, Executive Director with inputs from Radhika Arora contributed an article on How your residential status determines tax incidence for Financial Express.