Exempt Income of Non-Residents: FM proposes Section 10 Amendment in Union Budget 2025

The proposal to amend Section 10 of the Income Tax Act in Budget 2025 seeks to exempt income earned by non-residents from certain specified sources, making it easier for foreign investors and businesses to operate in India. The amendment will clarify which types of income will remain exempt, simplifying the tax process for non-residents. This change is expected to encourage more foreign investment by reducing the tax burden on non-residents and improving India's attractiveness as a destination for international business. The government's move is also seen as part of a broader effort to align Indian tax policies with global standards and promote economic growth.