In response to the tweet by Trinamool MP Mahua Moitra, the Finance Minister said that Finance Act 2021 has not brought any new or additional tax on Indian workers in Saudi / UAE / Oman / Qatar.
Finance Minister Nirmala Sitharaman said on Thursday that salary income earned by non-resident Indians in Gulf countries will remain tax-free in India.
Quoting a tweet by TMC MP Mahua Moitra, Ms Sitharaman clarified that the Finance Act 2021 has not brought any new or additional tax on Indian workers in Saudi / UAE / Oman / Qatar.
The minister said that amendments to the Finance Act, 2021 incorporated the common definition of the term “liable to tax” in the Income Tax Act to provide clarity.
“This amendment has not changed the taxation of salary income earned by NRIs in Gulf countries. His salary income earned in Gulf countries will continue to be discounted in India, ”Finance Minister Nirmala Sitharaman tweeted.
Earlier in the day, Ms. Moitra tweeted a photo of the amendment to the Finance Bill, 2021, stating that the “complicated word” in the amendment is actually “a special Gulf workers tax”.
Ms Moitra tweeted, “FM is going back on their words. Hardworking Indian workers in Saudi / UAE / Oman / Qatar will be taxed on extras.”
Ms Sitharaman’s office tweeted: “No going back on words. The Finance Act, 2021 has not brought any additional or new tax on hardworking Indian workers in Saudi / UAE / Oman / Qatar.” The minister also said that it is worrying to conclude without understanding the facts.
The minister’s office tweeted, “Further, a conclusion is not only misleading on social media platforms, but also causing undue nervousness in people.”
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