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Kerala CM writes to PM raising apprehensions over move to tax NRIs
DHNS
Last Updated IST
The proposed amendment affects all persons working in countries of the Gulf region, which have no personal income tax. (Credit: PTI Photo)
The proposed amendment affects all persons working in countries of the Gulf region, which have no personal income tax. (Credit: PTI Photo)

Kerala Chief Minister Pinarayi Vijayan has wrote to Prime Minister Narendra Modi expressing apprehensions over proposed amendments in the Finance Bill to reduce the maximum number days NRIs can stay in India to get tax benefits.

The Chief Minister pointed out that the proposal that NRIs who stay in India for 120 days or more would be considered as Indian residents would badly affect many NRIs, including those working in oil rigs in Gulf countries, who used to come home on eligible leaves and for taking care of families. At present it is 182 days.

"Kerala's economy will be adversely affected by this amendment as remittances comprise approximately 15 percent of our Gross State Domestic Product. Already, there are visible signs of slowdown in the national economy and this proposed amendment will dent the remittances," he said.

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The Kerala CM also expressed concern over another amendment proposed to consider NRIs who did not pay tax in a foreign country as Indian resident in the following year. The proposed amendment affects all persons working in countries of the Gulf region, which have no personal income tax.

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(Published 02 February 2020, 20:16 IST)