Thiruvananthapuram: Writing to Prime Minister Modi, Kerala Chief Minister Pinarayi Vijayan expressed deep anguish of the state regarding the Budget proposal to amend Section 6 of the Income Tax Act, 1961 and the reported move to tax non-resident Indians.
His reaction came just as expatriates in the state raised concerns whether they will have to pay income tax for the remittance they make to India. Another proposal in the budge which equally confused many is increase in number of days one has to stay abroad in order to get the status of NRI.
Union Finance Minister Nirmala Sitharaman on Sunday clarified that the Centre has no intention to tax global income of NRIs. The government is to tax only income generated in India.
She said that the income of an NRI generated in India would be taxed here. “I am not taxing what you’re earning in Dubai but that property which is giving you a rent here. You may be an NRI, you may be living there but that is revenue being generated here for you. So that’s the issue,” she said.
Reports say that majority of Kerala expatriates will not come under the purview of the new tax net.