This post has been read 63306 times!
NEW DELHI Feb 01: (AP) : Finance Minister Nirmala Sitharaman presented to Parliament the budget for fiscal year 2020-21 that starts April 1, saying the government plans to spend $39.8 billion for agriculture and allied activities, $9.9 billion for health, $3.9 billion for industry and commerce, and $628.6 million to combat worsening air pollution in the country.
Income tax will be lowered by 5-10% for people earning above 500,000 rupees ($7,140) a year. Those those earning less than 500,000 rupees will pay no tax, up from 250,000 rupees currently, she said.
Indian budget 2020 present by Finance Minister Nirmala Sitharam made Indians living in Gulf countries uneasy, in Gulf countries salaries are not taxed.
As per the new tax rules to prevent tax abuse, where “individuals, who are actually carrying out substantial economic activities from India, manage their period of stay in India,” so as not to declare their global income in India, exemptions provided for those who are considered residents of the country have been changed.
The Budget document said, If an Indian citizen stays out of country for more than 182 days, he becomes non-resident. So now in order to become non-resident he has to stay out of country for 240 days.
But if any Indian citizen is not a resident of any country in the world, he will be deemed to be a resident of India and the government will tax his income. Only those NRIs will be taxed in India who are not residents of any other country, but still enjoy NRI status as they stay out of India for enough duration in a year that makes them eligible to become NRIs, government clarified.
New clause of taxing non-resident Indians had caused outrage and confusion. It was reported that the new clause says “an Indian citizen who is not liable to tax in any other country or territory will come under Indian tax net” which was misunderstood and was later clarified at press conference which was held post budget.
It said if you are holding a resident visa in Kuwait, your income will not be taxed in India. Sources from Indian Bank said that as an NRI living in Kuwait you need to have valid residence and have to provide copy of Civil ID issued by Kuwait Govt as a proof to keep bank records updated along with Aadhar card and PAN card.