Remuneration where it exceeds Rs. 4,000/- per month for the purposes of section 10(6)(viia)(A). - Income Tax - 529/CBDT

INSTRUCTION NO. 529/CBDT Dated : March 22, 1973 Section(s) Referred: 10(6)(viia) Statute: Income - Tax Act, 1961 Attention is invited to Office Memorandum No. 458/9/72-FTD dated the 8th December, 1972 addressed to all Ministries of the Government of India and copies endorsed to Commissioners of Income-tax. At present, the approval of the Central Government in this behalf is granted in each case by the administrative Ministry concerned which endorses two copies of the order to the Central Board of Direct Taxes. One copy of the order of approval is sent by the Board to the Commissioner of Income-tax concerned for use by the I.T. Officer. As the concession now available u/s 10(6)(viia) of the Act in respect of technicians commencing their employment after 31-3-1971 is subject to certain monetary ceilings, the Board desire that the I.T. Officers should start separate files in respect of each such technician so that necessary action is taken from the very beginning (rather than at the time each technician leaves India) to ensure that tax is properly paid at source by the employer and action is taken to raise necessary assessments. For this purpose, it is important to note, as explained in the aforesaid Office Memorandum, that the term 'remuneration will include not only the salary, allowances, perquisites, etc., which may be payable/paid/provided by the employer outside India (whether in rupees or any foreign currency). 2. A question has been raised as to the manner in which has to be calculated on the remuneration where it exceeds Rs. 4,000/- per month for the purposes of section 10(6)(viia)(A). As the incomes exempt u/s 10 are not includible in the total income, the remuneration (understood in the sense as explained above) represented by the first slice of Rs. 4,000/-per month will not be included in the total income. Thus, in a case where the remuneration inclusive of allowances, value of perquisites etc., is Rs. 1,20,000/-, the income chargeable under the head 'Salaries' in accordance with section 10(6)(viia)(A) will be Rs. 72,000/- (Rs. 1,20,000- Rs. 48,000) and the tax will be calculated on this amount.