Big news for Indians working abroad, income tax rules changed...

Big news for Indians working abroad, income tax rules changed...

credit: third party image reference

  In an attempt to strengthen the sinking economy, the Modi government presented the second budget of its second term on Saturday. During this time many issues were discussed, while many provisions and schemes were also announced. Apart from this, the Finance Minister has announced new income tax rules for NRIs i.e. Indian citizens living abroad.

 In this statement, the Finance Minister said that no Indian will have to pay any tax on the earning amount outside the country. But this condition has been added that only any kind of earnings in India will be taxed. At the same time, the Modi government also said that, if needed, clarification related to it will also be added to the law.

credit: third party image reference

 According to the information, the government has made it clear that it has no intention of collecting tax from Indian citizens living or working in a country like the Middle East i.e. Saudi Arabia, Dubai. But it would be wrong to say that those citizens are not taxed there, so they have to pay tax in India.

credit: third party image reference

 This is the new tax rules -

 In the Budget 2020 regarding NRIs, it was said that tax will be taxed in India on worldwide earnings. Actually, Indians who are not paying tax under any other law in the world. Tax laws will apply to those NRIs just like other citizens of the country.

 According to the media report, the Modi government said that in the new rules, they do not aim to bring Indian citizens who have gone abroad to actually work to tax.

 In fact, the government found that some Indian citizens live in countries with low or zero tax laws to avoid tax. To prevent such people from taking advantage of the loopholes in the tax system of the country, the government has changed the provisions of NRI status.

 If an Indian citizen stays in another country of the world for more than 182 days from India, then he gets the status of Pravasi Bhartiya. The non-resident status will require that he does not remain in the country for more than 120 days in a year. This means that for NRI status, one has to stay out of the country 245 days a year.