Certain exempted income of a non-resident

• Interest Income [Sec. 10(4)/(4B)]
• Remuneration to person who is not a citizen of India [Sec. 10(6)]
• Tax paid on income of a non-resident or a foreign company [Sec. 10(6B)]
• Remuneration received by non-resident consultant [Sec. 10(8A)/(8B)/(9)]
• Interest on Securities [Sec. 10(15)]
  

Interest income of non-resident [Sec. 10(4)/(4B)]

• Interest on specified securities or bonds (i.e., 4% National Defence Loan, 1968 or 4% National Defence Loan, 1972), including premium on redemption of such bonds is exempted in the hands of a non-resident [Sec. 10(4)(i)]
  It is to be noted that no securities or bonds shall be specified on or after 1-6-2002 .

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Remuneration to person who is not a citizen of India [Sec. 10(6)]

Following remuneration to an individual who is not a citizen of India shall be exempt: 

• Remuneration received by him as an official of an embassy, high commission, legation, commission, consulate, or the trade representation of a foreign state or as a staff of any of these officials provided corresponding Indian officials in that foreign country enjoy similar exemptions in their country. However, they are not engaged in any other business or profession in India . [Sec. 10(6)(ii)]
  
  
• Remuneration received as an employee of a foreign enterprise for services rendered by him during his stay in India provided -

  1. the foreign enterprise is not engaged in any business or profession in India ;
  2. his stay in India does not exceed 90 days in aggregate; and
  3. such remuneration is not liable to be deducted from the income of the employer under this Act - Sec. 10(6)(vi)
     
     
• Remuneration for services rendered in connection with his employment on a foreign ship provided his total stay in India does not exceed 90 days in the previous year [Sec. 10(6)(viii)]
  
  
• Remuneration received as an employee of the Government of a foreign State during his stay in India in connection with his training in any undertaking owned by Government, Government company, subsidiary of a Government company, corporation established by any Central, State or Provincial Act and any society wholly financed by the Central or State Government - Sec. 10(6)(xi)

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Tax paid on income of a non-resident or a foreign company [Sec. 10(6B)]

Tax paid by Government or Indian concern in respect of the income (other than salary, royalty or fees for technical service) of a non-resident assessee (other than a company) or of a foreign company by virtue of an agreement entered into before 1-6-2002 by the Central Government with the Government of a foreign State or an international organisation.

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• Following income of a consultant are exempt from tax -

  1. any remuneration or fee received by him or it out of the funds made available to an international organisation [hereafter referred as the agency] under a technical assistance grant agreement between the agency and the Government of a foreign State; and
  2. any other income which accrues or arises to him or it outside India , and is not deemed to accrue or arise in India , in respect of which such consultant is required to pay any income or social security tax to the Government of the country of his or its origin.

• Income of family member of an individual (who is accompanying him to India) as referred above which accrues or arises outside India and which is not deemed to accrue or arise in India provided such member is required to pay any income or social security tax to the Government of that foreign State or to country of origin of such member.

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Interest on securities [Sec. 10(15)(iid)]

Interest on specified bonds to -

Notes

- NRI Bonds (Second Series), issued by the State Bank of India