Budget 2021: NRIs To Be Spared From Double Taxation; Can Open One Person Companies

Finance Minister Nirmala Sitharaman today, as part of the Budget 2021-22 speech, announced that the NRIs will be spared from double taxation, and new rules will be notified for the purpose.

She also said that the tax audit limit will be increased from Rs 5 crore to Rs 10 crore. The government has also eased requirements of residency for a person setting up a One person company from 182 days to 128 days in India.

The FM announced that the government is removing threshold limits of paid-up share capital of Rs 50 lakh and average annual turnover of Rs 2 crore over the past three financial years.

This will allow the businesses to register as One-person companies instead of private or public companies which have a greater compliance burden.