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Contents |
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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:-
- Government,
- Local authority,
- Corporation set up under any special law,
- Approved Scientific research institution or body, and
- 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:-
- the foreign enterprise is not engaged in any trade or business in India;
- his stay in the aggregate does not exceed ninety days in that previous year; and
- 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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