Recently a news came, which was widely discussed that this year also thousands of rich people are preparing to leave India (HNIs Migration) and they are going to settle in other countries. Actually this is not a new thing. Every year thousands of rich Indians leave the country and settle in America and Europe etc. Former CFO of the country’s second largest IT company Infosys and eminent chartered accountant Mohandas Pai has given the reason for this.
so rich are going to leave the country
First thing about the report. In the Henley Private Wealth Migration Report 2023, it was said that this year about 6,500 rich people from India can migrate to other countries. This figure is slightly less than the year before. In the year 2022, an estimated 7,500 rich Indians had migrated. However, even after this deficiency, India is included in the top-5 in terms of billionaires’ migration.
Told tax terrorism responsible
Mohandas Pai, chairperson of Manipal Group, reacted by sharing a news related to this on Twitter. He described the exodus of rich Indians as worrying and said that tax terrorism is responsible for this. Tax terrorism is a term, which is used to criticize the very high tax system of a country. In other words, according to Pai, the reason for the exodus of rich Indians is the high taxes imposed in India.
Difficulties are increasing for HNIs
He further said that the Finance Ministry is making it difficult for HNIs i.e. High Networth Individuals to live in India. He also demanded simplification of complex provisions like TCS. Sharing the news, he wrote, “In 2023, India is going to lose 6,500 rich, for whom Dubai and Singapore are the preferred options.” This is quite worrying. Finance Ministry is making life difficult for HNIs. There is a lot of tax terrorism and very complex compliance like TCS (Tax Collected At Source) needs to be simplified.
Have criticized TCS before also
Mohandas Pai has already criticized the recent decision of TCS. Recently in a news of the Indian Express, he was quoted as saying that the decision to collect TCS at the rate of 20 per cent on credit card payments during foreign travel is actually using a sword instead of a needle.
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