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1
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Remuneration of Technicians (Sec. [10(5B)]
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2
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Remuneration of officials of embassies etc. [Sec. 10(6)(ii)]
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3
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Remuneration of employees of foreign enterprises [Sec, 10(6)(vi)]
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4
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Remuneration for employment on a foreign ship [Sec. 10(6)(viii)]
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5
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Training Stipend [Sec. 10(6)(xi)]
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6
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Remuneration under co-operative technical assistance programs or technical
assistance grant [Sec. 10(8), 10(8A), 10(8B) and 10(9)]
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9.0
A discussion about computation of income chargeable under the head 'salary' is
made in para 4.2 of Chapter IV. Certain special provisions applicable to
non-residents and/or non-citizens is made in this chapter.
9.1
Remuneration of Technicians (Sec. [10(5B)]
Non-resident individuals rendering
services as a technician in the employment of:-
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Government,
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Local authority,
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Corporation set up under any special law,
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Approved Scientific research institution or body, and
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Any business carried on in India
Who are getting tax-free salary are not
liable to be assessed in respect of the tax paid by the employers on his
behalf. Such exemption is available for a period of 48 months commencing from
the date of his arrival in India, In order to avail of such exemption it is
necessary that the technician should not have been resident in India in any of
the four financial years immediately preceding the year of arrival. This
condition can, however, be waived in suitable cases in the case of those
employed for designing, erection or commissioning machinery or plant or
supervising activities connected with such designing, erection or
commissioning.
9.1.1
If the employment commenced prior to 1st April, 1993, the exemption is
available only to those non-residents who were not the citizens of India.
9.1.2
Technicians are the persons having specialised knowledge and experience in
constructional or manufacturing operations, mining, power generation,
agriculture, animal husbandry, dairy farming, deep sea fishing, ship building
or any other field notified by the Central Government. The Central Government
has notified the field of gracing and evaluation of diamond for export or
import, cookery and information technology including computer architecture
system, platforms and associated technology, software development process
and tools, for this purpose.
9.2
Remuneration of officials of embassies etc. [Sec. 10(6)(ii)]
Remuneration as officials or as member
of the staff of Embassy, high commission, legation, commission, consulate or
trade representatives of a foreign state is exempt from tax. For members of
staff to enjoy exemption, it is necessary that they are the subjects of such
foreign state and are not engaged in any business or profession or employment
in India. Remuneration as Trade Commissioner or other official representative
is exempt on reciprocal basis i.e. only if their Indian counter-parts enjoy
similar benefits in that country.
9.3
Remuneration of employees of foreign enterprises [Sec, 10(6)(vi)]
Such remuneration for services rendered
during stay in India is exempt if:-
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the foreign enterprise is not engaged in any trade or business in India;
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his stay in the aggregate does not exceed ninety days in that previous year;
and
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such remuneration is not liable to be deducted from the employer's income
chargeable to tax in India.
9.4
Remuneration for employment on a foreign ship [Sec. 10(6)(viii)]
Remuneration of a non-resident for
services rendered in connection with his employment on a foreign ship is
exempt from tax if his total stay in India does not exceed ninety days in the
previous year.
9.5
Training Stipend [Sec. 10(6)(xi)]
Remuneration received by an employee of
foreign government in connection with his training in any undertaking owned by
the Government or government owned company or its subsidiary or a corporation
or a government financed registered society, is exempt from tax.
9.6
Remuneration under co-operative technical assistance programs or technical
assistance grant [Sec. 10(8), 10(8A), 10(8B) and 10(9)]
Remuneration of a person assigned to
duties in India in connection with any cooperative technical assistance
programs and projects in accordance with an agreement between India and foreign
government is exempt if such remuneration is received directly or indirectly
from that foreign government and if the terms of the agreement between the two
governments provide for such exemption. Any other income of such person which
accrues outside India is also exempt from tax if such income has suffered tax
in the country of accrual.
Remuneration of a consultant engaged
under a technical assistance program which is paid out of funds made available
to an international organisation under a technical assistance grant agreement
between such organisation and the foreign government is exempt from tax if
the consultant is either not a citizen of India or is not ordinarily resident
in India or is a non-resident and the technical assistance is in accordance
with an agreement between the Government of India and that foreign
organisation. It is necessary that the engagement of such consultant is
approved by the prescribed authority. If such consultant employs any
other person in connection with such technical assistance program and pays
remuneration to him, such remuneration is also exempt if the person employed by
the consultant is either not a citizen of India or is not ordinarily resident
in India. The contract of service of such individual should be also approved by
the prescribed authority.
Any other income (apart from
remuneration) of the consultant or the person employed by him or any income of
their family members which accrues to them outside India is also exempt from
tax if such income suffers tax in the country where it accrues.
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