Remuneration Of Non-Citizens Is Exempt From Income Tax

[ The Incomes of an NRI Completely Exempt from Income Tax ]

The exemptions as described in topic 2 and topic 3 are available to nonresident Indians. There are certain exemptions which are available only to non-citizens of India. Thus, a non-resident who is not a citizen of India even though he may be of Indian origin would also be entitled to such exemptions as are given in Section 10(6) of the Income Tax Act. Some of the important exemptions are described below:

 

(I) The remuneration received by an individual, who is not a citizen of India as an official of an embassy, etc. is free from income tax, provided that his country offers the exemptions to Indians similarly employed there. These exemptions ‘are under clause (ii) of Section 10(6).

 

(ii) The remuneration received by a non-citizen as an employee of a foreign enterprise for services rendered by him during his stay in India, provided the foreign enterprise is not engaged in any trade or business in India and his stay does not exceed 90 days in such previous year, is not chargeable under the Income Tax Act. Such remuneration is totally exempt under Section 1 0(6)(vi). Certain other types of remuneration are also exempt under Section 10(6).
 
The Incomes of an NRI Completely Exempt from Income Tax !
1. Interest On Non-Resident (External) Account Is Fully Exempt From Income Tax
2. Interest On NSCS Is Completely Exempt From Income Tax Under Section 10(4B)
3. Remuneration Of Non-Citizens Is Exempt From Income Tax
4. Income Of Certain Venture Capital Undertakings Section 10 (23FB)
5. Other Exempted Incomes
6. Income in Special Economic Zones, 100% EOUs etc.
 
 
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