The Kerala Assembly on Thursday passed a resolution moved by state Chief Minister Pinarayi Vijayan to withdraw the proposed amendment to the section 6 of Income Tax Act, which lays down conditions for residential status for tax purposes in India.
This comes three days after Vijayan had raised concerns regarding proposed amendment in the Assembly."With the amendment, those working in foreign countries will have to stay abroad for 240 days per year instead of 182 days at present, for retaining their non-resident status. The proposed reduction of the period from '182 days or more' to '120 days or more' will adversely affect professionals leaving for employment from Kerala particularly in Gulf countries," he had said. He had said those running partnership business abroad and working in areas like oil rigs, will be most affected.
Congress members in the House had also raised their concerns regarding the proposed amendment.
Vijayan had written a letter to Prime Minister Narendra Modi in this regard, wherein he said: "Most of the people working in the countries of the Gulf Region, from Kerala, are having homes and families in Kerala. They visit and stay in their home state to look after domestic affairs. Tax evasion is not their intention and they do not fall in the category of persons who shift their bases to escape taxes." .
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