Foe a resident, if the resident has worked abroad, and has obtained income abroad. is this income taxablein In

Question

Suppose a resident is on a contract as an expert to United Nation organisation and is providing services outside india and receiving income in dollars outside india, will this income be taxed in India.

Answer 1

Salary payable by the Govt to an Indian citizen for services rendered outside india is deemed to accrue or arise in india. However , any allowance or prequisites paid abroad is exempt from tax u/s 10 (7)
Allowance paid by a United Nation Organisation to its employees is not taxable by virtue of section 2 of the UN (Privileges and Immunities) Act, 1974


First of all clarify the Residential status.
According to sec 5 of IT Act 1961
If you are Resident and ordinarily resident in India then its Taxable in the following manner 1 to 7 cases. Not taxable in 8th case.
If you are resident but not ordinarily resident then its taxable in case of 1st, 2nd,3rd,4th,5th.Not taxable in 6th,7th,8th case
If you are non resident then its taxable in 1,2,3,4 case and not taxable in rest.

1.Income received in India whether accrued in India or outside India.
2. Income deemed to be received in india whether accrued in india or outside india.
3. Income accruing or arising in india whether received in india or outside india.
4. Income deemed to accrue or arise in India whether received in india or outside india.
5. Income accrued and received outside india from a business controlled in or a profession set up in India.
6. Income accrued and received outside india from a business controlled from outside india or a profession set up outside india.
7. Any income other than income from business or profession accrued and received outside india.
8. Income earned and received outside india in earlier years but later on remitted to india in the previous year.

Answer 2

No the income will not be taxed. The IT act specifically provides for a case where a person in UNO services will not be taxed in India.