Regarding Income Tax for NRIs employed in UAE

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This discussion clarifies the applicability of recent budget changes to Non-Resident Indians (NRIs) employed in the UAE. The user, spending 160-170 days in India annually, sought to understand if the reduced 120-day NRI threshold impacts their tax status. The response confirms that individuals governed by Clause (a) of Explanation 1, who are residents of the UAE, will not have their UAE income taxed in India, regardless of the day count within India.

Siddharth Thakur

Siddharth Thakur (Querist)
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02 February 2020 Dear Team

In the recent change in the budget in Section 6, the period for being considered NRI has changed from 182 to 120 days in Clause (b) of Explanation 1 in Section 6. However, does the change also apply to Explanation 1, Clause (a)?

To describe my situation, I am currently employed in UAE (I have a Resident Visa sponsored by the employer). I typically travel to India on the weekends to visit my family and hence I am typically ~ 160-170 days in India. Will this change in the number of days be applicable to me also given that I am governed by Clause (a) of Explanation 1 and not Clause (b) of Explanation 1?

Thank you very much in advance for your support.

Regards,
Siddharth