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TMI Blog2004 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... nt received Rs.5,87,647 being payment from Morgan Stanley Staff Superannuation Fund. The payment was made to the applicant after deducting tax at source of Rs.1,85,109. ii. In view of the above mentioned facts, the applicant seeks advance ruling from this Authority on the following two questions:- "(i) On the facts and circumstances of the case stated in the Statement of Facts, whether the amount received from superannuation fund in 2002-03 is taxable in India in view of Double Taxation Avoidance Agreement with U.S.A.? (ii) On the facts and circumstances of the case stated in the Statement of Facts, whether the amount received from superannuation fund can be claimed exempt u/s 10(13)?" 2. It is the contention of the applicant that amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case since the employment was exercised in India, the salary will be taxable in India. Salary for the purposes of Sec. 15 of the Income Tax Act, 1961 includes salary received from a former employer also. iii. That it is not the case of applicant that the amount has been taxed in the USA also. iv. That the reference to rule 6 of Part B of Schedule IV is not of much relevance, as that Rule deals with deduction of tax at source by the Fund disbursing Authority and not the taxability of the receipt. v. That since the amount has not become payable on account of the circumstances mentioned in Sec. 10 (13), the applicant is not eligible for exemption u/s 10 (13). The amount became payable on account of resignation and not on account of death ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts made on resignation will be exempt only if it is after the specified age. Undoubtedly it is not the claim of the applicant that he resigned only after the age specified for voluntary retirement. 6. In this case Article 16 (1) of the DTAA with USA is also of no help. The said article only says that salaries in respect of employment in USA shall be taxable only in that State. The payment received from former employee in India, is taxable under the head 'salaries' in India in the year of receipt. 7. In the light of the above, in application No.621 of 2003 we rule as under:- Question No.(i) - The amount received from superannuation fund in 2002-03 for services rendered in India is taxable in India as per DTAA with USA . Question No.(ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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