Income Tax for NRI-Exemptions and Deductions

Income Tax for NRI-Exemptions and Deductions

Exempt Income of Non-Resident:-

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Sr. No. Section Eligible Person Income Source
1 10(4)(ii) Individual resident outside India (under FEMA Act) or an individual who has been permitted to maintain said account by RBI Interest on money standing to the credit in a Non-resident (External) account of an Individual in any bank in India as per the FEMA Act, 1999.
2 10(4C) A non-corporate non-resident or foreign company Interest payable by an Indian company or business trust in respect of moneys borrowed from a source outside India by way of issue of rupee denominated bond during the period from 17.9.2018 to 31.3.2019
3 10(4D) A specified fund Income on transfer of a capital asset, being a bond of an Indian Company or a public sector company (sold by the Government and purchased by the specified fund in foreign currency), GDR or rupee denominated bond or derivative or any other notified security, on a recognized stock exchange located in any IFSC is exempt –(i)where the consideration is paid or payable in convertible foreign exchange;(ii)to the extent such income accrues or arises to, or is received in respect of units held by a non-resident.
4 10(6)(ii) Individual (not being a citizen of India) Remuneration received by Foreign Diplomats/Consulate and their staff (Subject to conditions)
5 10(6)(vi) Individual – Salaried Employee (not being a citizen of India) of a foreign enterprise Remuneration received as an employee of a foreign enterprise for services rendered by him during his stay in India, if: a)Foreign enterprise is not engaged in any trade or business in India; b)His stay in India does not exceed the aggregate a period of 90 days in such previous year; and c)Such remuneration is not liable to deducted from the income of employer chargeable under this Act
6 10(6)(viii) Individual Salaried Employee (Non-resident who is not a citizen of India) of a foreign enterprise Salary received by or due for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year.
7 10(6)(xi) Individual – Salaried Employee (not being a citizen of India) of Government of foreign state Remuneration received as an employee of the Government of a foreign state during his stay in India in connection with his training in any Government Office/Statutory Undertaking/ corporation/ registered society etc.
8 10(6A) Foreign Company Tax paid by Government or Indian concern (under terms of agreement entered into after 31-3-1976 but before 1-6-2002 by the Government or Indian concern with the foreign company) on income derived by way of royalty or fees for technical services by the foreign company from Government or Indian concern.
9 10(6B) Non-corporate non-resident or foreign company Tax paid by Government or Indian concern under terms of agreement entered into before 1-6-2002 by Central Government with Government of foreign State or international organization on income derived by a non-corporate non-resident or foreign company fromthe Government or Indian concern, other than income by way of salary, royalty or fees for technical services.
10 10(6BB) Government of foreign State or foreign enterprise (i.e., a person who is a non-resident) Tax paid by Indian company, engaged in the business of operation of aircraft, which has acquired an aircraft or an aircraft engine on lease, under an approved (by Central Government) agreement entered into between 1-4-1997 and 31-3-1999, or after 31-3-2007, on lease rental/income derived (other than payment for providing spares or services in connection with the operation of leased aircraft) by the Government of a Foreign State or foreign enterprise.
11 10(6C) Foreign company (notified by the Central Government) Royalty income or fees for technical services under an agreement with the Central Government for providing services in or outside India in projects connected with security of India.
12 10(6D) Non-corporate non-resident or foreign company Royalty income from or fees from technical services rendered in or outside India to, the National Technical Research Organisation (NTRO)
13 10(8) Individual who is assigned to duties in India Foreign income; and Remuneration received by an individual from the Government of a foreign State, in connection with any co-operative technical assistance programme and project under agreement between Central Government and the Government of a foreign State.
14 10(8A) Consultant, being (i) An individual: a) not being an Indian citizen; or b) being an Indian citizen who is not ordinarily resident in India, or (ii) any other person, being a non- residentengaged by the agency for rendering technical services in India in connection with any technical assistance programme or project in accordance with the approved agreement. Foreign income; and Any remuneration or fee received by such person (agreement relating to his engagement must be approved) out of funds made available to an international organization (agency like World Bank or any other multi-lateral agency) under a technical assistance grant agreement between that agency and the Government of a foreign State (such technical assistant should be in accordance with an agreement between the Central Government and the agency).
15 10(8B) Employee of a consultant, being an individual:a) not being an Indian citizen; orb) being an Indian citizen who is not ordinarily resident in India Contract of service must be approved by the prescribed authority before commencement of service. Foreign income; andRemuneration received, directly or indirectly, by an individual who is assigned to duties in India in connection with any technical assistance programme and project in accordance with an agreement entered into by the Central Government and the agency from a consultant referred to in section 10(8A).
16 10(9) Any family member of individual as referred to in section 10(8)/(8A)/(8B), accompanying him to India. Foreign income
17 10(15)(iiia) Bank incorporated outside India and authorised to perform Central Banking functions in that country. Interest on deposits made by a foreign bank with scheduled bank with approval of RBI.
18 10(15)(iv)(fa) a) Non-resident b) Individual or HUF being a resident but not ordinary resident Interest payable by scheduled bank on deposits in foreign currency where acceptance of such deposits is duly approved by RBI.[Scheduled bank does not include co-operative bank].
19 10(15)(viii) a) Non-resident b) Individual or HUF being a resident but not ordinary resident Interest on deposit on or after 01.04.2005 in an Offshore Banking Unit.
20 10(15)(ix) Non-resident Interest payable by a unit located in an IFSC in respect of monies borrowed by it on or after 1.9.2019.
21 10(15A) Government of foreign State or foreign enterprise (i.e., a person who is a non-resident) Lease rental paid by Indian company, engaged in the business of operation of aircraft, to acquire an aircraft or an aircraft engine on lease (other than payment for providing spares or services in connection with the operation of leased aircraft)under an approved (by Central Government) agreement not entered into between 1-4-1997 and 31-3-1999, or after 31-3-2007.
22 10(23BBB) European Economic Community Income of European Economic Community derived in India from interest, dividends or capital gains from investment out of its funds under notified scheme of Central Government.
23 10(23BBC) SAARC Fund for Regional Projects. Income of SAARC Fund for Regional Projects set up by Colombo Declaration.
24 10(48) Foreign company on account of sale of crude oil, any other goods or rendering of services. It should not be engaged in any other activity in India. Income received in India in Indian currency on account of sale of Crude oil or any other goods or rendering of services as may be notified by the Central Government in this behalf. Foreign company and agreement should be notified by the Central Government in national interest.
25 10(48A) Foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom. Income accruing or arsing on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India. Foreign company and agreement should be notified by the Central Government in national interest.
26 10(48B) Foreign company from sale of leftover stock of crude oil from the facility in India. Income from sale of leftover stock of crude oil from facility in India after the expiry of agreement or arrangement referred to in section 10(48A) or on termination of the said agreement or arrangement, in accordance with the terms mentioned therein, as the case may be, subject to such conditions, as may be notified by the Central Government.
Note: Foreign income referred in section 10(8)/(8A)/(8B)/(9) above refers to the other income accruing or arising outside India. Such income would be exempt provided: (i)it is not deemed to accrue or arise in India; and (ii)the individual is required to pay any income tax or social security tax of such income to the Government of that Foreign State or Country of origin of such member.

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