NEW DELHI: Finance Minister Nirmala said Sunday that there is no intention to tax the global income of the NRIs and only the income generated in India will be taxed.
Following the announcement of the budget on Saturday, there was confusion about the fiscal responsibility of non-resident Indians (NRIs) in their global income.
What we are doing now is that the income of an NRI generated in India will be taxed here. If you are earning something in a jurisdiction where there are no taxes, why will I include that in mine that has been generated there?
While if you have a property here and you are paid an income, but since you live there, you bring this income to your income there and you do not pay taxes there, you do not pay taxes here ... since the property is in India, I have a sovereign right to taxes, he said in a post-budget interaction with the media.
Live plus I am not taxing what you are earning Dubai But that property that is giving you an income here, may be an NRI, may be living there but that is an income generated here for you. So that's the problem, he added.
The 2020 finance bill has proposed that an Indian citizen be considered a resident in India, if not subject to taxation in any country or jurisdiction.
This is a provision against abuse, as it is noted that some Indian citizens change their stay in a low or no tax jurisdiction to avoid paying taxes in India, the finance ministry said in a statement.
The new provision is not intended to include Indian citizens who are workers in good faith in other countries in the tax network. In some section of the media, the new provision is being interpreted to create the impression that those Indians who are workers in good faith in other countries, even in the Middle East, and who are not subject to taxation in these countries, will be Taxable in India on the income they have earned there. This interpretation is not correct, he said.
To avoid any misinterpretation, it is clarified that in the case of an Indian citizen who becomes a resident of India under this proposed provision, income earned outside of India by him will not be taxed in India unless it is they derive from an Indian business or profession, he added.