INCOME TOTALLY EXEMPT FOR
NON-RESIDENT:
(1)
Interest on notified securities or bonds and premium on redemption
of such securities.[Sec.10(4)(i)]
(2)
Interest on deposits in the Non-Resident (Non-repatriable) Rupees
Deposit Scheme.
(3)
Interest on NRE/FCNR Accounts. [Sec.10(4)(ii)]
(4)
Interest on notified saving certificates subscribed in foreign
currency by an Indian citizen/person of
Indian
origin. [Sec.10(4B)]
(5)
Income from units of UTI acquired in foreign exchange by Indian
citizen/person of Indian
origin.
[Sec.32(1)(aa)
of UTI Act]
(6)
Interest on NRNR deposits and other securities, Bonds, Savings
Certificates notified under
section
10(15)(i)
[list on page 1.141 of Direct Taxes Circulars, 1994 Edition,
Taxman]
(7)
Interest on notified Bonds purchased in foreign exchange, exemption
continues even after
person
becomes
resident. [Sec.10(15)(iid)]
(8)
Interest paid by Scheduled Banks on RBI approved foreign currency
deposit, to a NR or
NOR
[Sec.10(15)(ivfa)]
(9)
In case Royalty or Fees for technical
services is received free of tax under an agreement
which
relates
to a matter included in the industrial policy and is in accordance with
such policy, or
where
the
agreement is approved by the Central Government the tax paid by the payer
viz.
the
Government
or the Indian concern will not be considered as income derived by the
recipient.
In
other
words, the requirement of grossing up applicable to net of tax payments
will not apply to
such
income.
[Sec. 10(6A) ]
(10) Fees
for technical services received by notified foreign companies in pursuance
of an
agreement
for
providing services in or outside India in projects connected with the
Security of India is
exempt
from
tax. [Sec.10(6C)]
(11)
The income of the following persons is not subjected to tax as it
is not considered as accruing
or
arising
in India:-
- Income of a non-resident engaged in the
business of running a news agency or of publishing newspapers,
magazine
or journals arising from activities which are confined to the collection
of news and views
in India for transmission out of India.[ Sec. 9(c)
]
- Income of a
non-resident who is also not a citizen of India, or, of a firm in which no
partner is resident
or Indian citizen, or, of a company in which no
shareholder is a resident or Indian citizen if such income
arises from
operations which are confined to the shooting of any cinematography film
in India. [ Sec. 9(d) ]
(12)
Non-resident individuals rendering services as a technician in the
employment of –
(a) Government,
(b) Local authority,
(c) Corporation
set up under any special law,
(d) Approved Scientific Research
Institution or Body, and
(e) Any business carried on in India
Who are getting
tax-free salary are not liable to be assessed in respect of the tax paid
by the
employers on his behalf.
Such exemption is available for a period of 48 months commencing
from
the date of his arrival in India. [ Sec. 10 (5B)
]
EXEMPTIONS TO NON-CITIZEN
ONLY:
(1)
Remuneration of officials or as member of the staff of Embassy,
high commission,
legation,
commission,
consulate or trade representative of a foreign state is exempt from tax
provided
they
are not engaged in any business or profession or employment in India. [
Sec. 10(6)(ii) ]
(2) Remuneration
of the employees of foreign enterprises is exempt if –
(a) The foreign enterprise is not engaged in
any trade or business in India.
(b) His stay in the aggregate does not exceed
ninety days in that previous year; and
(c) Such remuneration is not liable to be
deducted from the employer’s income
chargeable
to tax in
India. [ Sec. 10(6)(vi) ]
(3)
Remuneration of a non-resident for services rendered in connection
with his employment on
a
foreign
ship is exempt from tax if his total stay in India does not exceed ninety
days in the
previous
year. [ Sec. 10(6)(viii) ]
(4)
Remuneration Of foreign Government Employee on training in certain
establishments in
India.
[Sec.
10(6)(xi) ]
(5)
Passage money from employer for the employee and his family for
home leave outside India.
[
Sec. 10(6)(i)(a) ]
(6) Passage
money for the employee and his family to ‘Home Country’
after
retirement/termination
of service in India. [ Sec. 10(6)(i)(b) ]
(7)
Remuneration received by an employee of foreign Government in
connection with his
training
in
any undertaking owned by the Government or Government owned Company or
its
subsidiary
or a Corporation or Government financed Registered Society is exempt from
tax
[
Sec.10(6)(xi) ]
(8)
Remuneration of a person assigned to duties in India in connection
with any
cooperative
technical
assistance programmes and projects in accordance with an agreement between
India
and foreign Government is exempt. [ Sec. 10(9) ]
