India could consider countermeasures under the principle of reciprocity and tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets.
Since October 2023, foreign transactions above Rs 7 lakh under Liberalised Remittance Scheme have attracted a 20% tax collected at source. It’s sending a signal to big spenders abroad: we are watching you.
The high transaction cost on remittances amounts to an additional tax on cross-border movement of incomes. For 2023, roughly $41 billion was spent on just transaction costs.
India is expected to get $125 billion in 2023, up from 2022’s $111 billion. This inflow has caused South Asia’s share as a whole to rise, says the World Bank.
With bad loans shrinking & capital buffers stronger, urban co-op banks’ new umbrella body NUCFDC is now prioritising rollout of digital transformation.
If deal goes through, Greece will be 2nd foreign country to procure vehicle. Morocco was first; TATA Group has set up manufacturing unit there with minimum 30 percent indigenous content.
Many of you might think I got something so wrong in National Interest pieces written this year. I might disagree! But some deserve a Mea Culpa. I’d deal with the most recent this week.
Yes, if USA applies remittance tax then India is justified to tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets. However the real solution is to make India a developed nation fast. The other measures India can take is to work for an alternative world currency like a BRICS currency so that the power of dollar is reduced. The dollar as world reserve currency is giving undue advantages to USA and under Trump presidency it is heavily misused.
Yes, if USA applies remittance tax then India is justified to tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets. However the real solution is to make India a developed nation fast. The other measures India can take is to work for an alternative world currency like a BRICS currency so that the power of dollar is reduced. The dollar as world reserve currency is giving undue advantages to USA and under Trump presidency it is heavily misused.