This was mostly expressed by participants of a “table talk” organized by the India Fraternity Forum, Jeddah.

Being an organization of the entire Indian expatriates, the Fraternity Forum has taken up this topic for discussion in view of the increased number of phone calls received from various sections of the expatriate community to know more about the proposed DTC 2010 and its impact, as it is now before the Standing Committee on Finance where it is being given the final shape before it is presented and passed by the Indian Parliament.

Abdul Ghani, assistant coordinator of the Forum, introduced the subject from a Gulf NRI perspective through multimedia presentation and requested the attending leaders of various socio-cultural organizations and professionals to educate the expatriate community on the DTC 2010.

Sanil Balakrishnan of State Bank of India, Jeddah, detailed the various articles of the DTC and illustrated in simple and straight terms as to how an NRI will become a resident.

O.P.R. Kutty, thanks to his many decades experience in financial administration in the Kingdom, exposed the tax issues and financial constraints that the NRI will face as per the DTC 2010, while settling down in India with the earnings and end of service benefits from employment in the Gulf and other investments plans like LIC policy.

Professor Sudhakaran, being an educationist and social activist, criticized the policy of the government to tax the NRIs under DTC 2010 and warned that it would adversely affect the remittances to India and will lead to the valuable foreign exchange being diverted through unauthorized/illegal money transfers, which will be a great loss to the nation.

He added that the proposal to tax the income of the NRIs will compel them to stay away from India to avoid income tax.

Professor Reynolds humorously shared the agony of government policy in seizing the opportunity to squeeze the hard-working NRIs to strip them off their earnings and offer nothing in return, while settling down in India. 

Mohideen, working with a plastic factory as marketing manager, requested details regarding the tax proposal for NRI investment funds, and Kutty explained, “how to invest the earnings and to avoid income tax.”

Ashraf Morayur meanwhile suggested a memorandum be prepared to convey the concern of the Gulf NRIs to the Parliamentary Standing Committee on Finance and to request all expatriate organizations to convey the same to the finance minister in various petitions so that there could be necessary changes in the DTC 2010.

The audience included NRI businessmen, leaders of various professional, social, cultural and welfare organizations, representing different states of India.

Al Aman (coordinator, Fraternity Forum Tamil Nadu chapter) welcomed the guests and Mohtisham Habeebullah (coordinator, Fraternity Forum Northern States) conveyed the vote of thanks. E.M. Abdullah (media-in-charge of Fraternity Forum) moderated the discussion.