Finance Minister Clarifies Tax on Income for NRIs

When the Union Budget was being presented in the parliament on February 1, 2020, by Finance Minister Nirmala Sitharaman, it was initially thought that Indians not paying tax abroad, will have to do so in India.

However, on Sunday, a clarification was provided that the income earned by an NRI outside India, will not be taxed in India unless it is from an Indian business or profession as per a report.

The Budget also proposed to reduce the period of stay in India to 120 days from 182 days earlier for persons of Indian origin to be deemed as non-resident Indians.

At present, if an Indian or a person of Indian origin (PIO) managed his stay in the country such that he/she remained a non-resident for eternity, he/she was not liable to pay tax on his global income in India, further states the report.