swami91;599521Exit tax is not for your company alone if you own the shares. Its about individual worth including all the property you have in India (not sure about inherited property). The tax 15% ( I think) of all the assets (total worth $2M) you have as if its sold on the day you relinguish the USC. More over I remember reading that even after paying the exit tax you are not free. Your children (if they are US citizens will also be on the hook I believe). Please read the law completely as it was passed and figure out yourself...I think this law was passed to trap big fishes who change the citizenship before their companies go IPO to avoid taxes but unfortunately most of the small fishes will get caught in it...except the big fishes.. :-)
Although you are taxable on your global income, as a US citizen, I believe the exit tax only applies on US assets. Can you please provide a reference to verify /educate ourselves if the exit tax actually applies on the Indian assets too. Thanks.