Why Some Indian Celebrities Don't Have Indian Citizenship: Manav Narang Explains

You may have heard that big celebrities such as Akshay Kumar and Alia Bhatt do not possess Indian citizenship. At first, this may sound strange. However, as soon as you realize why they do it, things make sense. According to finance influencer Manav Narang, many rich people opt for citizenship of nations which have a specific arrangement with India known as the Double Taxation Avoidance Agreement (DTAA).

What is DTAA?

The DTAA is an agreement signed between India and about 90 other countries. The treaty is meant to ensure that individuals do not have to pay tax twice on the same income—once in a foreign country and again in India. If an individual is a resident of a nation that has entered into a DTAA with India and earns income in that nation (and pays tax on it), India will not tax the same income again.

Why Celebrities Use This Strategy

Celebrities and rich people often earn income from different countries like brand deals, properties, and investments. So, some of them choose citizenship in countries with low or zero tax rules. For example, Dubai has no tax on capital gains. So, if a celebrity sells property there, they pay no tax. And under DTAA, India also won't ask for tax on that income. It's a smart, legal way to save big money.

View this post on Instagram

A post shared by Manav Narang (@learnwithcamanav)

It's Not Illegal, It's Smart Planning

This might sound like a tax stunt, but it's purely legal. DTAA stands for Double Taxation Avoidance Agreement, an official agreement aimed at avoiding the double taxation of income. And celebrities just do it smartly. So the next time you hear of an Indian celeb without Indian citizenship, you will know why.