Any Income from Salaries for service rendered in India
is deemed to accrue or arise in India
It doesn’t matter where salary is received, it may be received in India or outside India
Example
Pension received outside India for services rendered in India,it will be deemed to accrue or arise in India and hence taxable
Example
Leave salary paid outside India for leaves earned in India will be deemed to accrue or arise in India and hence taxable
Exception
Salary paid outside India by Govenrment of India
to Indian citizen
for services rendered outside India
will also be deemed to accrue or arise in India
However,as per Section 10(7),
1)If a government employee renders any service abroad
then all allowance and perquisites are fully exempt .
[Section 10 (7)]
