Salary earned by Indian workers in Gulf exempt from tax: Finance minister

NEW DELHI: Union finance minister Nirmala Sitharaman on Thursday clarified that the salary earned by Indian workers in Gulf countries would continue to be exempt from income tax in India.
Reacting to a tweet by Trinamool Congress (TMC) MP Mahua Moitra, the finance minister emphasised that recent amendments in the Finance Act, 2021 will not put any additional or new tax burden on non-resident Indians working in the Gulf.

Sitharaman said that the government is not going back on its words and the hardworking Indian workers in Saudi, UAE and Qatar will not face any altered tax liability.

Earlier in the day, Moitra had tweeted that amendment in Finance Bill, 2021 “complicated words” and the amendment is “in reality a Special Gulf workers tax”.
“FM going back on her words. Hardworking Indian workers in Saudi/UAE/Oman/Qatar to be taxed EXTRA,” Moitra had said.

The TMC leader was taking a jibe at a clarification made by Sitharaman in February where she had said that there is no intention to tax global income of NRIs and only income generated in India would be taxable.
However, Moitra claimed that the recent Finance Act amendments is contradictory and would lead to a tax burden on the NRIs in Gulf.

Meanwhile, Nirmala Sitharaman urged the TMC leader to refrain from drawing conclusions without comprehending the facts, stating that it is worrying.
“Further, putting out the conclusion on a social media platform not only misleads but also creates unwanted panic among people,” the minister’s office tweeted.

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