Indians Now have to Stay Abroad for 240 Days to Claim NRI Status

New Delhi: The central government, on Saturday, made certain changes in the Income Tax Act redefining the non-resident status for Indian citizens for tax purposes. As per the changes, an Indian citizen will now have to stay out of the country for 240 days, against 182 previously to become a non-resident, said Revenue Secretary Ajay Bhushan Pandey on Saturday.

“We have made changes in the Income Tax Act where if an Indian citizen stays out of the country for more than 182 days, he becomes a non-resident. So we’ve made some changes, now in order to become non-resident he has to stay out of the country for 240 days,” he was quoted as saying by news agency ANI.

Pandey further said that non-resident Indians not paying taxes in any foreign country will now be taxed in India.

“Some people are residents of no country. They may be staying in different countries for a certain number of days,” said the Revenue Secretary.

“So if any Indian citizen is not a resident of any country in the world, he’ll be deemed to be a resident of India and his worldwide income will be taxed,” he added.

Earlier today, Union Finance Minister Nirmala Sitharaman presented her second budget in the Lok Sabha, announcing cuts in income tax rates for individuals on condition that they give up exemptions and deductions.

Proposing new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent, the finance minister said that the government intends to remove all I-T exemptions in the long run.

Source: ANI

Image Courtesy:LiveMint