Dubai: Non-resident Indians (NRIs) will not have to pay taxes on their global income if they stay in their home country for more than 60 days in a year as proposed by the Direct Tax Code Bill, Kapil Sibal, Union Cabinet Minister of Human Resource Development, Communications and Information Technology said on Monday.
Allaying apprehensions of NRIs, Sibal, while addressing an Indian Business and Professional Council (IBPC) organised forum, said: “This is something [tax code for NRIs] that is not in our minds. The matter hasn’t come to the cabinet and it may never come to cabinet.”
He added that the fears over the issue are not real and the government will not implement any such tax code.
According to the existing law, NRIs are liable to pay taxes on their global income if they stay in India for more than 182 days in a financial year.
The new proposed tax code calls for reduction in the number of days from 182 to 60, which hasn’t been approved by the parliament yet.
In further clarification, another government official said that according to the code proposal an NRI has to stay 365 days in the preceding four years for the 60-day law to be applicable to him, in case it is approved.
Talking about the proposed tax code, Sibal said that the code will bring enormous reform to the country and will be implemented, however, it is being studied by a standing committee of parliament and could be revised with the omission, or revision, of certain provisions.
Hailing NRIs in Dubai for their significant contribution in the development of the country as well the UAE, he said: “NRIs are our own people and we never are unfair to our own people. We will continue to need your support and long-term investment for the development of the country. We toast you every year on the Pravasi Bharatiya Divas [NRI Day] and will continue to do so. I think we have moved miles in favour of NRIs since we came to power and we are proud of your achievements.”
He also said that opposition to FDI (foreign direct investment) in retail and the ongoing Coalgate issue that is stalling parliament proceedings is misconceived.
He called upon opposition parties to allow a debate to take place in parliament on all burning issues and urged them not to stall developmental reforms.
