Couple of days after the Kerala Chief Minister Pinarayi Vijayan’s comments raising concerns on the proposed amendment to Section 6 of Income Tax Act came, the Kerala Assembly passed a resolution on Thursday to withdraw the proposed amendment.

According to the resolution, the proposed amendment will adversely affect the Non-Resident Indians, particularly from Kerala.

As per the proposed amendment to Section 6 of the IT Act, 1961, Person of Indian Origin (PIO) in a financial year has of stay in India for “120 or more” days instead of “180 or more” days in order to retain their Non-Resident status. Similarly, he has to stay abroad for 240 or more days instead of 182 days to retain the status of NRI.

Kerala CM claimed that there are many Keralites who work abroad especially in Middle East countries and the proposed amendment will adversely affect them.

“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,” said Pinarayi Vijayan in the state Assembly.

“Those running partnership business in abroad and working in areas like oil rigs will be most affected,” he claimed.

Earlier, Vijayan had also told about the letter he had written to PM Modi on the issue by saying that Kerala’s economy is substantially supported by remittances, especially from those in gulf countries.

“Those working overseas have their families and homes 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,” CM said in his letter.

However, the government believes that some individuals misuse the provision and manage to stay in India for less than the current specified limit of 182 days and thereby escape the payment of tax on their global income in India.