However, the government has not yet clarified how withdrawals from NPS tier II account will be taxed. Investors can benefit from tier II account investing which allows flexibility regarding withdrawals. Reduce TDS rates on interest incomeTDS rates on interest income should be brought down to 5% instead of 10%. However, the income tax department must allow some means to NRIs so they can e-verify their tax returns. The government can allow digital ways for NRIs to verify their tax returns directly from outside India.

Source: dna January 18, 2017 05:26 UTC