Kerala CM Pinarayi Vijayan today said that the Union budget 2020 is a stab in the back for Non-Residential Indians(NRI). He said that the proposed changes in Sec 6 of Income-tax act 1961, which defines tax exemptions for nonresiding Indians will badly affect NRI’s.
According to the recommended amendment those who stay for more than 120 days in India will not be considered as NRI’s. Earlier the stay limit was 182 days.The amendment will affect the majority of NRIs who pay IT regularly contrary to Finance bills claim to track income tax violators.
CM Pinarayi Vijayan added that many Indians who work in Middle East countries are employed in oil fields and the nature of their jobs require them to spend their life parted between India and the foreign country. Many have their jobs which require them to renew contracts and compulsory medical leaves for more than 120 days for regaining health. All these categories of employees will be cut short of the benefits availed by NRI tax exemptions. Apart from the foreign currency which comes to India through money transfers NRIs drive the national infrastructure with their hefty investments.
With the new amendment these categories would essentially be exposed to taxes from the host and the parent country.