Last modified: 23 August 2016

Non-Resident Individuals - Exempt Incomes

SectionParticulars
10(4)(i)Interest on bonds or securities notified before 01-06-2002 by the Central Government including premium on redemption of such bonds.
Limit of exemption or deduction or Computation of incomeInterest amount
Available toNon resident
10(4)(ii)Interest on money standing to the credit in a Non-resident (External) account in India.
Limit of exemption or deduction or Computation of incomeInterest amount
Available toPerson resident outside India (under FEMA Act) and person who has been permitted to maintain said account by RBI
10(4B)Interest on notified savings certificates issued before 01-06-2002 by the Central Government and subscribed to in convertible foreign exchange.
Limit of exemption or deduction or Computation of incomeInterest amount
Available toIndividual, being a citizen of India or a person of Indian Origin, who is a non resident.
10(6)(ii)Remuneration received by Foreign Diplomats/Consulate and their staff (Subject to conditions)
Limit of exemption or deduction or Computation of incomeRemuneration
Available toIndividual (not being a citizen of India)
10(6)(vi)Remuneration received by non-Indian citizen as 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 in aggregate a period of 90 days in such previous year

c) Such remuneration is not liable to be deducted from the income of employer chargeable under this Act

Limit of exemption or deduction or Computation of incomeRemuneration
Available toIndividual - Salaried Employee (not being a citizen of India)
10(6)(viii)Salary received by a non-resident, 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.
Limit of exemption or deduction or Computation of incomeSalary
Available toNon-resident Individual - Salaried Employee (not being a citizen of India)
10(6)(xi)Remuneration received by an Individual, who is not a citizen of India, 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, etc.
Limit of exemption or deduction or Computation of incomeRemuneration
Available toIndividual-Salaried Employee (not being a citizen of India)
10(6B)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 from Government or Indian concern, other than income by way of salary, royalty or fees for technical services
Limit of exemption or deduction or Computation of incomeTax liability of non-resident borne by taxpayer
Available toNon-resident
10(8A)Foreign income and remuneration received by consultant (agreement relating to his engagement must be approved) out of funds made available to an international organization (agency) under a technical assistance grant agreement between that agency and the Government of a foreign State (Subject to certain conditions).
Limit of exemption or deduction or Computation of incomeEntire Amount
Available toIndividual, being a:

a) A non-resident engaged by the agency for rendering technical services in India;

b) Non-Indian citizen; or

c) Indian citizen who is not ordinarily resident in India

10(8B)Foreign income and remuneration received by an employee of the consultant as referred to in Section 10(8A) (contract of service must be approved by the prescribed authority before commencement of service).
Limit of exemption or deduction or Computation of incomeEntire Amount
Available toIndividual, being a:

a) NRI or nominee or survivor of NRI;

b) Individual to whom bonds have been gifted by NRI.

10(15)(iv)(fa)Interest payable by scheduled bank on deposits in foreign currency where acceptance of such deposit by the bank is duly approved by RBI.
Limit of exemption or deduction or Computation of incomeInterest amount
Available toa) Non-resident

b) Individual or HUF being a resident but not ordinary resident

10(15)(viii)Interest on deposit made on or after 01.04.2005 in an offshore Banking Unit referred to in Section 2(u) of the Special Economic Zones Act, 2005.
Limit of exemption or deduction or Computation of incomeInterest amount
Available to Person who is a non-resident or not ordinarily resident.
10(50)Any income which is chargeable to equalization levy under Chapter VIII of the Finance Act, 2016.
Limit of exemption or deduction or Computation of incomeEntire income
Available toNon-resident

The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.

Popular Content