Salary or Remuneration to Foreign Employee and Non-Resident Member of Crew [Section 10(6)]

The following incomes are exempt when received by an individual who is not a citizen of India:

(i) Remuneration [U/s 10(6)(ii)].

1. The remuneration received by an ambassador or other officials of the Embassy, High Commission or Legation of a foreign State in India. 

2. The remuneration by a consular officer of a foreign State in India. 

3. The remuneration received by a trade commissioner or other official representative in India of a foreign State, provided corresponding officials of the Government of India in that country are given a similar concession. 

4. The remuneration received by a member of the staff of any of the officials referred to in (a), (b) and (c) above.

If the person mentioned above in (a) to (d) is a subject of the country represented, is not engaged in any business, profession or employment in India (otherwise than as a member of such staff), and the country represented gives similar concession to the members of the staff of corresponding officials of the Government of India.

(ii) Remuneration received by him as an employee of foreign enterprise [U/s 10(6)(vi)]

(e.g., technician deputed by a foreign firm to work in India), for service rendered by him during his stay in India provided the following conditions are fulfilled—

1. the foreign enterprise is not engaged in any trade or business in India ;

2. his stay in India does not exceed in the aggregate a period of 90 days in such previous year ; and

3. such remuneration is not liable to be deducted from the income of the employer chargeable under the Act.

(iii) Employment on a foreign ship [U/s 10(6)(viii)].

Any income chargeable under the head “Salaries” received by or due to any such individual being a non-resident, as remuneration for service rendered in connection with his employment on a foreign ship where his total stay in India does not exceed in the aggregate of a period of 90 days in the previous year.

(iv) Remuneration received by an employee of foreign govt. during his stay in India for his training in India [U/s 10(6)(xi)].

Such remuneration shall be fully exempted if he is taking training in any of the following concern : 

1. Institution owned by govt 

2. A company wholly owned by Central or State govt. or partly owned by Central and partly by State govt 

3. A subsidiary Co. of company referred at point (b) above 

4. Any corporation established by or under Central, State or Provincial Act 

5. Any society registered under Societies Registration Act; 186Q and which is wholly financed by Central or State govt.