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No Income Tax on Salary Earned by Indian Workers in Gulf, says FM


Non-resident Indians' salary income earned in Gulf countries will continue to be tax-free in India, according to Finance Minister Nirmala Sitharaman.


Sitharaman clarified that the Finance Act 2021 does not impose any new or additional taxes on Indian workers in Saudi Arabia, the United Arab Emirates, Oman, or Qatar, citing a tweet from TMC MP Mahua Moitra.

No Income Tax on Salary Earned by Indian Workers in Gulf, says FM

The said amendment to the Finance Act of 2021, according to the minister, merely incorporated a general definition of the term "liable to tax" in the Income Tax Act to provide clarity.

"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," the Office of Finance Minister Nirmala Sitharaman tweeted.

Sitharaman's office tweeted: "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."

The minister also expressed concern about drawing conclusions without first understanding the facts.

"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.

Read more about: income tax
Story first published: Friday, April 2, 2021, 8:40 [IST]
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