Taxability of salary income earned by non-residents from Indian ...

Income Tax Ruling: Non-residents' Salary Taxable Only for Services Rendered in India u/s 9(1)(ii) of IT Act.

March 13, 2024

Case Laws     Income Tax     AT

Taxability of salary income earned by non-residents from Indian companies. In this Judgement, it was determined that under Section 9(1)(ii) of the Income Tax Act, salary income is taxable in India if earned in India. However, it was clarified that if the services are rendered outside India, the salary income cannot be taxed in India. - The Tribunal analyzed the definition of salary under Section 15 of the Income Tax Act, which includes salary due from an employer or paid/allowed to the employee. Considering the scope of total income under Section 5, the ITAT concluded that no taxability arises on salary/allowances received by the assessee as they were earned outside India.

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