A Resolution has been passed by the State Legislative Assembly of Kerala against the move that has been taken by the Central Government in order to introduce the Income Tax for the Non- Residential Indians (NRI).
The Resolution that has been passed is against the Central government’s move that has been proposed amendment to Section 6 of the Income Tax Act, which has reduced the time period for the Non- resident Indians to stay in the country in order to get exempted from paying tax to the country.
Pinarayi Vijayan who is the Chief Minister of Kerala has passed the resolution against the Union government’s move and has said that move to amend the Section 6 of the Income Tax Act should be withdrawn by the Central government as it would show adverse effects on the Non- resident Indians.
A substitution in Section 6 of the Income Tax Act has been made by the government in the Finance Bill of 2020 which has said that the days that an Indian has to stay abroad has been extended from 128 days to 182 days which when stated in other words, an Indian national cannot stay in India for 120 days or more in a year in order to claim the status of being a Non- resident Indian.
According to Section 6 (1A) that has been proposed, it reads that, “Notwithstanding anything contained in clause (1), an individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature.”
It has also said that a Non- resident Indian who is not taxable in the foreign country that he/ she is living in, would have to pay the taxes in India.
The amendment that has been proposed in the Finance Bill in 2020 says that if the income of a Non- resident Indian is earned or accrued in India is said to be taxable in India. The income or the earnings from the country India include the income earned from a house or a property that is situated in India, the capital that has been gained on the transfer of assets that are situated in India, the income from the fixed deposits or the interests that can be attained on a savings bank account.
It clearly says that the income that is attained from India would be taxable and the income which is earned outside the country will not be taxable in India.
The Finance Bill 2020 has also proposed that a citizen of India shall be deemed to be a resident of India if he is not liable to pay the taxes in any other country abroad or under any other jurisdiction.
.){kind=link}