The government has made it clear that expatriates only have to pay tax on their income from business or work abroad. Income from work or business abroad is not taxed in India. The Finance Ministry made the announcement on Sunday in the wake of misinterpretations in the media of its budget proposal to stay abroad for at least 240 days. The Budget Proposal is not intended to bring in foreign workers to the tax bracket.
It is a misconception that expatriates in the Gulf and elsewhere pay taxes in India. The statement explained that the interpretation that real workers have to pay taxes in India to earn it is not correct. According to the proposed definition, a citizen of India who is considered a resident of India is not taxed in India for income earned outside India except through business or employment. The ministry said in a press release that it would include the proposed amendment.
Currently, NRI 182 days abroad to be considered as। 182 days' stay in the country is considered permanent, However, according to the budget proposal, NRIs will only stay abroad for 240 days. The proposal would affect expatriates working in many areas. Chief Minister Pinarayi Vijayan has written to the Center demanding the withdrawal of the budget proposal.