India is a major country of transit.Every year thousand's of Indians migrates to foreign countries for their lively hood.Among the total population,India shows an increasing number of international migrants from and the majority of them concentrated in the GCC region.Most of them are from Kerala. An individual residing abroad is defined as a non-resident in a financial year under the Income-tax Act if his stay in India doesn't exceed 182 days. The union budget of 2020 has proposed to reduce this period to 120 days with certain conditions. NRI's have had an important role to play in the development of our country. Their economic contribution has far-reaching impacts on the national income of our economy. But at present, this scenario has changed. The COVID 19 Pandemic and the ongoing economic crisis have badly affected Kerala's remittance economy. This crisis has led to severe job losses abroad and forced thousands to return home.Many of the foreign workers are forced to reduce their remittance to Kerala.As per official records,Kerala receives close to 85,000 crores annually as foreign remittances.But now it is expected that Kerala could lose nearly 13,000 crores in annual foreign remittances in the wake of the COVID 19 pandemic. The situation may adversely affect the savings of the households who are depending largely on foreign remittances.