Govt clarifies: Income of Indians working in Gulf countries exempt from tax in India

Finance Minister Nirmala Sitharaman has clarified that contrary to claims, income earned by non-resident Indians in Gulf countries will remain exempt from tax in India.

Nirmala referred to the Twitter post by Trinamool Congress MP Mahua Moitra, who claimed that the Finance Minister had gone back on her words on tax exemption for Indians working in Gulf countries.

Tweeting a photograph of an amendment in Finance Bill, 2021, Mahua Moitra claimed that the "complicated words" in the amendment are "in reality a Special Gulf workers tax".

Responding to the TMC MP's claim, Nirmala clarified that the Finance Act 2021 had not brought any new or additional tax on Indian workers in Saudi Arabia, UAE, Oman or Qatar.

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

The Office of Finance Minister Nirmala Sitharaman said in a Tweet: "This amendment has not altered the taxability of salary income earned by non-resident Indian citizens in Gulf countries. Their salary income earned in Gulf countries would continue to be exempt in India."

Slamming Mahua Moitra for twisting facts, the finance minister said that concluding 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," she said.

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