India to give dual citizenship to Overseas Indians

NEW DELHI, June 16 (UNI) In a decision of far-reaching significance for Indians settled abroad, the Congress-led United Progressive Alliance (UPA) today redeemed its pledge to confer dual citizenship on them.

A meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh, also decided to issue 'smart cards' to registered Overseas Citizens of India , Finance Minister P Chidambaram told mediapersons.

The cabinet gave its approval for amendment of relevant acts to provide for giving benefit to all people of India origin, and their children and grandchildren, who migrated from India to countries other than Pakistan and Bangladesh after January 26, 1950 or were eligible to become Indian citizen on this date or belonged to the territories, which became part of India after August 15, 1947 to acquire Overseas Citizenship of India as long as their home countries allow dual citizenshp in some form or the other.

It was decided to amend Ctitizenship Act, 1955, and also Allocation of Business Rules and to allow Ministry of Overseas Indian Affairs to issue notifications under Section 7B (1) of the Citizenship Act, 1955.

It may be recalled that Prime Minister Manmohan Singh gave assurance to confer dual citizenship to Overseas Indians at the last Pravasi Bharatiya Divas in Mumbai.

With a view to stimulating the flow of capital, technology and personnel from India to Serbia and Montenegro and vice-versa, the cabinet today gave its approval for signing of a Convention with the Government of Serbia and Montenegro for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.

The cabinet also decided to amend Para 5 of Article 23 in the Convention between India and Portugal for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

India has so far signed and notified such bilateral treaties for avoidance of double taxation with 69 other countries.