NRIs shifting their movable wealth from US to India to escape estate tax
US estate tax spells taxing times for NRIs
29 Dec, 2010, 05.25PM IST, Maulik Vyas & Skandita Agarawal,ET Bureau
Under new laws being passed by the Obama administration, the first $5 million in value of any individual’s estate is tax-free, but all value above this figure is taxed at 35%.
When Jaydev Patel (name changed), a New York-based neurologist came to his native town Dharmaj, 90 km from Ahmedabad, this month, he carried an unusual cargo — paintings he had collected over two decades in the US.
“All individuals who are tax residents of the US, who may or may not be staying in that country now, fall under the purview of the estate law ,” said Amitabh Singh, Tax Partner, Ernst & Young.
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