Home / Politics / Policy /  Income tax exemption to continue on salary income by NRIs in Gulf: Sitharaman

Salary income earned by non-resident Indians in Gulf countries would continue to be exempt from tax in India, said Union Finance Minister Nirmala Sitharaman on Thursday.

Nirmala Sitharaman was reacting to the TMC MP Mahua Moitra's allegations over the Finance Act 2021. Union Finance Minister Nirmala Sitharaman clarified that the Act has not brought in any new or additional tax on Indian workers in Saudi/UAE/Oman/Qatar.

The Trinamool Congress MP today tweeted: "Complicated words in Finance Bill 2021 - 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."

In n string of tweets, Sitharaman said:"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."

"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 a general definition of the term "liable to tax" in the Income Tax Act to provide clarity," she said.

The Finance Minister taking a jibe at the TMC MP said that 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.

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