807/CBDT. - Income Tax - 807/CBDT

INSTRUCTION NO. 807/CBDT Dated : November 30, 1974 Section(s) Referred: 143 Statute: Income - Tax Act, 1961 A number of officers of foreign Government come to India for undergoing training in the various Defence Training Establishments of our Government. During the training period, some of these trainees are paid salaries/allowances either in India or in their respective countries by their Governments. The salary drawn by these officers for the period of their training in India can be said to have been earned in India and, hence, taxable. 2. In 1962 the Board had occasion to consider the question of taxation of salaries received in India by officers of foreign Governments during their period of training at the Defence Services Staff College, Wellington and it was decided to refrain, as a matter of policy, from taxing salaries paid in India by the foreign Governments to their own officers while on training at the Defence Services Staff College, vide Board's letter F.No.9/49/61-II(AI) dated 31.3.62. 3. The question whether tax exemption should be extended to officers of foreign Governments undergoing training in other Defence Training Establishments has been examined by the Board and it has been decided that salary and allowances received by officers of foreign Governments from their respective Governments during the period of training in various Defence Training Establishments of our Governments (whether such/allowance are received in India) should not be subjected to Income-tax. 4. These instruction may be brought to the notice of all officers in your charge.