NRIs will pay tax only on India income
Non-resident Indians (NRIs) working in income tax-free jurisdictions such as the UAE will have to pay tax only on their income generated in India, and not on their earnings outside the country, finance minister Nirmala Sitharaman said. Sitharaman said the clarification will be included in the statute to clear any confusion among tax officials. A provision in the Finance Bill, 2020 said that an Indian citizen who is not liable to be taxed in any other country or territory shall be deemed a resident of India. This led to worries that NRIs working in countries that do not tax personal income would be taxed in India on their global earnings, similar to how residents are taxed on their global income. A 30% tax plus cess and surcharge on NRIs’ income abroad would leave less money in their hands. The intention of redefining the concept of residence for tax purposes was to plug a gap that leaves the India income of NRIs out of the tax net because they do not live here, Sitharaman said.
Tags : INTERNATIONAL