Daijiworld Media Network – New Delhi

New Delhi, Feb 1: In a major announcement in the Budget presented by Finance minister Nirmala Sitaraman, the rules for Indian citizens to claim NRI status have been tightened from staying 182 days abroad to 240 days now. For years now, a person who stays aboard for more than 182 days had earned numerous tax reliefs in India. Especially, the amount earned aboard was not taxable in India.

Now on, if one stays for more than 120 days in India, you will be considered as resident of India and you will be taxed for the earnings abroad.

Also, if you are not a resident of any other country, then even if you stay for more than 240 days, you will be entitled to pay taxes in India for your foreign income.

Revenue Secretary Ajay Bhushan Pandey on Saturday said that, “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 ANI news agency.

Pandey further said that an Indian citizen, staying in different foreign countries for a certain period and does not pay tax, will be considered a resident of India and his worldwide income will 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.