A tweet of TMC MP Mahua Moitra created chaos across the media and general public as to whether the income of non-resident Indian citizens working in Gulf Countries is subject to Income tax or not.
Thereafter, Finance minister Nirmala Sitaraman clarified the issue with her tweet that amendment in the Finance Act, 2021 “liable to tax” in the Income Tax Act shall not in any way bring new or additional tax on Indian workers in Saudi/UAE/Oman/Qatar.
“It is worth mentioning here that Moitra on Thursday tweeted that FM going back on her words. Hardworking Indian workers in Saudi/UAE/Oman/Qatar to be taxed extra,”
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 Office of Finance Ministry replied that the amendment in the Finance Act, 2021 has not changed the taxability of salary that is earned by non-resident Indian citizens in Gulf countries. Salary income of the aforesaid Indians that is earned in Gulf countries shall continue to be exempt in India.
Nirmala Sitaram said that amendment in the Finance Act, 2021 is merely meant for clarity and connotes a general definition of the term “liable to tax” mentioned in the Income Tax Act to provide clarity.
The minister’s office tweeted “Further, putting out the conclusion on a social media platform not only misleads but also creates unwanted panic among people,” She further added that reaching conclusions without properly comprehending the facts is worrying.
