Kerala Assembly Passes Resolution Moved by Pinarayi Vijayan to Withdraw Proposed Changes to Section 6 of IT Act to Tax NRIs
Indian citizens or people of Indian origin are treated as residents if they stay for 182 days or more in India. The amendment proposes to reduce this to 120 days with effect from April 1, 2021. For a resident, his or her global income is subject to tax in India.
Kerala, February 6: Kerala Assembly passed a resolution moved by Kerala Chief Minister Pinarayi Vijayan on Thursday to withdraw the proposed amendment to the Section 6 of the Income Tax Act. According to an ANI update, the resolution states that it will adversely affect the Non-Resident Indians, particularly from Kerala.
Pinarayi Vijayan on Sunday criticised the Centre for proposing an amendment to section 6 of the Income Tax Act, 1961, which stipulates conditions for determining the residential status for tax purposes in India. He further pointed out that most of the people working in the Middle East from Kerala are having houses and families in Kerala and they visit and stay in their home state to look after their domestic affairs. Income Tax For NRI Only Applicable for Money Earned In India, FM Nirmala Sitharaman Clarifies.
In a clarification, the Finance Ministry had said that "this is an anti-abuse provision since it is noticed that some Indian citizens shift their stay in low or no tax jurisdiction to avoid payment of tax in India".
Check ANI tweet:
Currently, Indian citizens or people of Indian origin are treated as residents if they stay for 182 days or more in India. The amendment proposes to reduce this to 120 days with effect from April 1, 2021. For a resident, his or her global income is subject to tax in India.
Clearing all the doubts, the Finance Minister had earlier said, and as quoted by Hindu Business Line, "Let's say an NRI, living in Dubai or elsewhere, is not taxed for his income letter there, but has some earnings through something in India for which he doesn't pay tax here. We are saying, for that income which is generated in India."
(With additional inputs from agencies)
(The above story first appeared on LatestLY on Feb 06, 2020 03:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).