Quick Summary
Finance Minister Smt. Nirmala Sitharaman says:
"No going back on words. The Finance Act, 2021 hasn't brought in any additional or new tax on hardworking Indian workers in Saudi/UAE/Oman/Qatar. It has merely incorporated general definition of the term "liable to tax" in the Income Tax Act to provide clarity.
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."
Drawing conclusions 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.
FAQ :
No, the Finance Act 2021 has not introduced any additional or new tax on Indian workers in Saudi Arabia, the UAE, Oman, or Qatar.
The Finance Act 2021 has incorporated a general definition of the term "liable to tax" in the Income Tax Act to provide clarity.
No, this amendment has not altered the taxability of salary income earned by non-resident Indian citizens in Gulf countries.
No, their salary income earned in Gulf countries would continue to be exempt in India.
The clarification was issued because drawing conclusions without comprehending facts and spreading misinformation on social media can mislead people and create unnecessary panic.
CAclubindia
