Tax Relief

Tax breaks for Indians overseas resulting from COVID-19

NEW DELHI – The Indian government has agreed to exempt foreign Indians from double taxation who were forced to stay beyond their tax exemption limit due to the disruption caused by the COVID-19 pandemic.

India’s Central Direct Tax Office (CBDT) had received numerous statements asking people who came to India in 2019-20 to relax their determination of housing status for the 2020-21 financial year.

They wanted to leave India again but were unable to because international flights were suspended during the lockdown caused by the pandemic.

In a nightly announcement, the CBDT urged anyone facing double taxation to provide the information about their stay in India by March 31st. She said, “This form must be sent electronically to the Chief Income Tax (International Tax) Commissioner and can be found at www.incometaxindia.gov.in.

Commercial international flights were suspended when the nationwide lockdown was imposed on March 25, 2020. Later, such flights were restricted under bilateral bubble agreements and services have yet to be fully resumed. As a result, many NRIs and foreigners have had to extend their stay in India. – WAM

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