Indian citizens, who are residing overseas and not paying taxes in their host country, will be required to pay the personal income tax in India, according to a proposal in the Budget 2020.
Parizad Sirwalla, partner and head, Global Mobility Services- Tax, KPMG in India said these are significant changes proposed in determining tax residency of individuals. "Indian citizens and person of Indian origin who were on a visit to India had an extended period of 182 days of stay in India before they could be regarded as a resident of India from an income tax perspective. This period has been proposed to be reduced to 120 days now."
That apart, he said Indian citizens will always be regarded as residents of India irrespective of their stay in India in the relevant financial year if they are not liable to pay tax in any other country or territory on account of their residence, domicile etc.