Exempion of living allowance to foreign nationals coming to India under training programmes. - Income Tax - 1801/CBDT

INSTRUCTION NO. 1801/CBDT Dated: November 7, 1988 Vide Board's Instruction letter F.No.24/3/66-IT(A1) dated 16.2.66, the living allowance varying from Rs.200/- to Rs.600/- p.m. paid to the foreign nationals coming to India for training in various courses of study under the Technical Cooperation Schemes of Colombo Plan and the Special Common-wealth African Assistance Plan(SCAAP) was exempted under section 10(14)/10/(6) of the Income-tax Act, 1961. Representations have been received to the effect that the living allowance paid to foreign nationals under these training programmes and the India Technical Cooperation Programme(ITEC) has since been raised to Rs.3,000/- p.m. and the exemption should be allowed in respect of the enhanced amount. Taking into consideration the rise in prices, it has been decided that the living allowance paid to the foreign nationals coming for training in the courses of study under the aforesaid programmes at the enhanced rate may be treated as exempt under section 10(14)/10/(16) of the Incometax Act, 1961 for and upto the assessment year 1988-89. After the assessment year 1988-89, the exemption will be governed, inter alia, by the new provisions of section 10(14)/(i)(ii) as substituted by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1.4.1989. These instructions may please be brought to the notice of all the officers working under you.