The Supreme Court has directed the Central Government to make it mandatory for every Indian resident living abroad to pay taxes in his or her own country.
The order was made by Chief Justice Gopalkrishnan in his order on Tuesday on a plea filed by a Delhi-based accountant who was living in Singapore, according to the news agency ANI.
The court said there are four types of tax experts in the country: tax collectors, tax inspectors, tax practitioners, and tax consultants.
It directed the Centre to provide details of the number of tax specialists and assess their salaries.
In case of tax professionals, the court said, “the Centre must ensure that such tax experts are not employed to perform tasks that are directly and proximately related to the collection of tax from taxpayers.”
The tax experts must be provided with their own personal tax registration number, said the order.
A resident abroad should not be obliged to pay tax in the local language, if the language of the tax official is different, said Justice Gokhale.
As a result, foreign nationals who are living in India for more than six months should be provided the opportunity to pay their tax dues in their own language, the order said.
“The provisions of the provisions of Section 2(1) and (3) of the Income Tax Act, 1951 are in effect for the purpose of determining whether a foreign national is resident in India.
The provisions of these provisions shall not apply to a person if the person is not resident in the State in which the person resides,” the order added.
An Indian resident abroad has been exempted from paying taxes in the language that is his or the official language of his or their parent, in case of the parent’s residence.