11 January 2011
a person is a resident. He is a public sector employee. The govt has sent him on deputation for training abroad. he gets salary from that foreign company. my query is can he claim exemption u/s 10(7) which says Salary payable by the Govt to an Indian citizen/national for services rendered outside India: The following conditions have to be satisfied before such income is deened to accrue or arise in India:
1) Income should be chargeable under the Head "Salaries". 2) The payer should be Govt Of India 3) The recipeint should be an Indian citizen-whether resident of non-resident. 4) the services should be rendered outside India
Salary in the above case shall be deemed to accrue or arise in India but all allowances or perquisites paid outside India by the Govt to the above Indian citizens for their rendering services outside India are exempt under section 10(7). In my calculation i have taken exemption for perquisites and allowances under sec 10(7). Am I right. email:samruta1feb90@gmail.com thanks in advance.
11 January 2011
IF The following conditions are satisfied before such income is deened to accrue or arise in India:
1) Income should be chargeable under the Head "Salaries". 2) The payer should be Govt Of India 3) The recipeint should be an Indian citizen-whether resident of non-resident. 4) the services should be rendered outside India
Then the Salary in the above case shall be deemed to accrue or arise in India but all allowances or perquisites paid outside India by the Govt to the above Indian citizens for their rendering services outside India are exempt under section 10(7).
So Salary is taxable and Perquistes and Allowances are Exempt.
12 January 2011
Sir.Are you sure.The client is asking for clear proof. Becoz he he gets salary from that foreign company not from Govt which a prerequisite condition. Pls reply.
18 January 2011
he is working in a public sector company wherein the Govt holds 81% holding. The answer will remain the same or change. Nw can he claim the exemption?
CAclubindia
