Section 5 of the Act – salary for services rendered outside India but received in India is not taxable in India in absence of TRC if the Taxpayer furnishes evidence in support of accrual of salary outside India.
Geeta Jani / Dhishat B. Mehta Chartered Accountants
15.IT A No.:2407/Bang/2018 Maya C. Nair vs.
ITO A.Y.: 2013-14 Date of Order: 31st
Section 5 of the Act – salary for services rendered
outside India but received in India is not taxable in India in absence of TRC
if the Taxpayer furnishes evidence in support of accrual of salary outside
was an individual employed in India. During the relevant year, she was deputed
by her employer to USA. During the deputation period, her entire remuneration
was credited by her employer to her bank account in India. As her stay in India
was less than one hundred and eighty-two days, she qualified as non-resident in
terms of section 6(1) of the Act. In her return of income, the Taxpayer
disclosed remuneration for services rendered in India as taxable and claimed
remuneration for the deputation period outside India as exempt. For the period
of her deputation in USA, the Taxpayer had furnished return of income in USA
and had also duly paid taxes in USA.
However, for the following reasons,
the AO concluded that the Taxpayer was not entitled to exemption of income
earned on deputation in USA and accordingly charged tax thereon.
(i)The Taxpayer had not provided confirmation of h