No Income Tax On Salaries Of Overseas Indians Living In Gulf Countries


Finance Minister Nirmala Sitharaman clarified that the salary earned by NRIs working in Gulf countries would continue to be exempt in India. Quoting a tweet of TMC MP Mahua Moitra, Ms. Sitharaman clarified that the Finance Act 2021 has not brought in any new or additional income tax on Indian workers living in Saudi/UAE/Oman/Qatar. The Minister said the amendment in the Finance Act, 2021, has merely incorporated the general definition of the term “liable to tax” in the Income Tax Act to provide clarity.

Her clarification came after TMC MP Mahua Moitra 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/U.A.E/Oman/Qatar to be taxed EXTRA, Ms. Moitra tweeted.

NSitharaman Twitter
Source – NSitharaman Twitter

Ms. 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 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,” the Minister’s office tweeted.

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