IN1.4.1 Income tax
Section 2(3) of the Act defines non-resident as a person who is not a resident (see IN1.2).
The taxability of income for a non-resident is determined on the basis of the following:
- Ìý
•ÌýÌýÌýÌý residence status as per section 6, and
- Ìý
•ÌýÌýÌýÌý the scope of total income as per section 5 read with section 9 of the Act – incomes received or is deemed to be received in India or income which accrues or arises or deemed to accrue or arise in India
Key exemptions
The Act provides exemption from income tax to non-residents, some of the illustrative exemptions along with the relevant sections are tabulated as follows:
| Section | Nature of exemption | Person for whom amount is exempted |
| 10(4)(ii) | Interest on money standing to the credit in a non-resident (external) account in India. | Interest amount | Person resident outside India (under FEMA Act*) and person who has been permitted to maintain said account by RBI |
| 10(6)(ii) | Remuneration received by foreign diplomats/consulate and their staff (subject to |
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Web page updated on 17 Mar 2025 13:18