Why Budget proposal on tax on Indians working abroad triggered confusion

Why Budget proposal on tax on Indians working abroad triggered confusion

If Indian national life in New Delhi but earns rental income from a house she owns in London, then, along with all other income that she earns within India, this rental income too, will attract tax.

An amendment to the Income Tax Act proposed in the Finance Bill 2020, has created confusion about Indians who primarily work and earn their living outside India.

The broad import of the amendment, as understood on February 1, was that all Indians who were working abroad and not paying any income tax in those countries — like the many Indians who work in jurisdictions like the UAE — would be liable to be taxed in India. Kerala Chief Minister Pinarayi Vijayan wrote to Prime Minister Narendra Modi recording his government’s “strong disagreement” with the provision, which he said “will hurt those who toil and bring foreign exchange to the country”.

 

Source: https://indianexpress.com/article/explained/why-budget-proposal-on-tax-on-indians-working-abroad-triggered-confusion-6249533/

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