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Feb 17, 2025
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Employed outside India; here’s how your income tax in India will be impacted as per new tax bill 2025; Experts seek clarification from the tax dept
It seems that the proposed Income Tax Bill, 2025, has made a minor change in language with the residential status clause. Earlier, Indians who moved abroad ‘for the purpose of employment’ enjoyed a relaxation from Indian tax residency provisions namely 182 days instead of 60 days for others. While others had to satisfy the 60 days clause, but if these persons who moved abroad 'for the purpose of employment' stayed in India for less than 182 days in the current financial year then they would have been considered non-residents under the Income Tax Act, 1961. Now as per the proposed Income Tax Bill, 2025, the phrase mentioned above has been changed to Indians who moved abroad “for employment outside India”.
Due to this change in language of the proposed Income Tax Bill, 2025, job-seekers, self-employed, professionals, etc may now fall outside the ambit of the relaxed Indian tax residency laws (182 days).
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