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Money earned in India by NRIs will be taxed
Why is it in the news?
- Union Finance Minister scotched fears that provisions introduced in the Budget would bring Indian workers’ income in zero tax jurisdictions, like the UAE, into the Indian tax net.
More in the news
- The Finance Bill has proposed three major changes to prevent tax abuse by citizens who don’t pay taxes anywhere in the world:
(1) Reducing the number of days that an Indian citizen can be granted non-resident status for tax purposes from 182 to 120
(2) Citizens who don’t pay taxes anywhere will be deemed to be a resident
(3) The definition of ‘not ordinarily resident’ has been tightened
- Some feared that the provision as it will hurt Indians working in the Middle East, who toil and bring foreign exchange to the country” through remittances.
- Finance Minister replied to this- "NRIs 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, pay a tax".
Source
The Hindu.