Shift from Punitive Enforcement to Voluntary Compliance Marks Key NRI Reform, Says Jidesh Kumar
Commenting on the recent changes impacting Non-Resident Indians (NRIs), Jidesh Kumar noted that the earlier regulatory framework, particularly the Tax Deduction and Collection Account Number (TAN) requirement, disproportionately affected individual property buyers. According to him, the requirement frequently resulted in avoidable delays, procedural errors, and uncertainty around transaction timelines, making property sales unnecessarily complex for NRIs.
He observed that the government’s latest measures signal a clear policy shift from a punitive enforcement approach to one that prioritises voluntary compliance. This transition, he said, is especially significant in the context of enhanced global information exchange, where tax authorities now have greater access to cross-border financial data.
Jidesh Kumar further pointed out that the limited amnesty window provided under the revised framework should be viewed as a precursor to stricter enforcement once the period concludes. In his view, the reforms aim to simplify compliance for genuine taxpayers while reinforcing accountability through clearer, time-bound mechanisms.
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