Union Budget 2021 India: The new Section 89A aims to solve the issue of double taxation on retirement accounts of NRI employees
Indian Union Budget 2021-22: With countries across the world opening their economies, the boundaries among them are becoming hazier day by day. As a natural fallout, global mobility of the workforce is assuming increasing importance. Global mobility leads to a win-win situation for everyone, as it leads to easy availability of workforce and talent in a cost-effective manner. However, it also gives rise to a host of peculiar issues, mainly due to reasons like differences in labour and taxation laws.
Usually, mobile employees are required to mandatorily open social security / retirement fund accounts in the host country; it also acts as an effective way of tax deferral in such countries as income from such contributions are tax deferred to the year of withdrawal / closure of such accounts.
Source: Financial Express
