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)] 

  1. Income Tax
  2. Income from Salaries
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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