January 2019

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 October, 2018

 

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.

 

FACTS


The Taxpayer 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

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