Taxable Income of RNOR, Income Tax

[Reshma kochar]

Dear Experts,

Facts of the case:

A person is rendering services to an Indian Group co, and receiving salary from India and foreign head office. also he is visiting other countries as well. His status is of RNOR. Does the salary income from foreign co taxable in India?

My understanding:

Reference to Section 5(1) Income which is accues or arise to RNOR outside india shall not be including in his total income if it is not derived from a business controlled in or a profession set up in india.

Reading section 9(1)(ii) income falls under the head salary will be accrues or arises in India, if it is earned in India. and explanation (a) says it will be earned in india if the services are rendered in india.

concerning both the sections, under section 9(1)(ii)a salary  income of RNOR from the foreign company only for the period of stay in india will be accrue and arise in india as services are rendered in india.  

Please correct my views, if they are not in line.

Also please clarify the meaning of word "derived" in section 5(1)

Regards,

Reshma

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.