Clarification on income tax for job in abroad

506 votes

a condition where there is service that is rendered outside India and the employer is the government of India and the employee is a citizen of India then the income received outside India would still be considered as having arisen in India and taxed in the country. Several conditions are important here with the first being that this classification is for salary received and not other heads like allowances under the head of salaries. The next condition is that the employer has to be just the government of the country and the person needs to be an Indian citizen if the condition of the citizenship is not met then once again the income would not be considered to have been arisen in India.

Other cases
There are other cases too where the service is rendered outside India and in this case the employer could be any other entity other than the government of India. In such a case the salary income would not be considered to have arisen in India. This is a clear distinction that arises due to the fact that the employer is not the government and the services are rendered outside India. In this case even if the person is an Indian citizen then the overall conditions would be applicable and hence there would not be any income that arises in the country. Once the basic distinction is made then the additional way of taxation of the income arises and this would then have to be followed.

Advocate Siddhant Sharma LawRato