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Salary income of Indian workers in Gulf exempt from income tax: Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said salary income earned by non-resident Indians in Gulf countries would continue to be exempt from tax in India.

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Nirmala Sitharaman | Finance Ministry | Gulf countries

Press Trust of India  |  New Delhi 

Nirmala Sitharaman
Nirmala Sitharaman, Finance Minister

Finance Minister on Thursday said salary income earned by non-resident Indians in would continue to be exempt from tax in India.

Quoting a tweet of TMC MP Mahua Moitra, Sitharaman clarified that the Finance Act 2021 has not brought in any new or additional tax on Indian workers in Saudi/UAE/Oman/Qatar.

The minister said the said amendment in the Finance Act, 2021, has merely incorporated general definition of the term "liable to tax" in the Income Tax Act to provide clarity.

This amendment has not altered the taxability of salary income earned by non-resident Indian citizens in Their salary income earned in would continue to be exempt in India, the Office of Finance Minister tweeted.

Earlier in the day, Moitra had tweeted a picture of an amendment in Finance Bill, 2021, saying the complicated words in the amendment is in reality a Special Gulf workers tax.

"FM going back on her words. Hardworking Indian workers in Saudi/UAE/Oman/Qatar to be taxed EXTRA," Moitra tweeted.

Sitharaman's office tweeted: "No going back on words. The Finance Act, 2021 hasn't brought in any additional or new tax on hardworking Indian workers in Saudi/UAE/Oman/Qatar."

The minister also said that drawing conclusions without comprehending the facts is worrying.

"Further, putting out the conclusion on a social media platform not only misleads but also creates unwanted panic among people," the minister's office tweeted.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, April 01 2021. 19:37 IST
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