Provisions of section 10(6) of the Income Tax Act covers the following exemptions –
1. Section 10(6)(ii) – Remuneration received as an official of various offices or remuneration received as a trade commissioner or other official representative
2. Section 10(6)(vi) – Remuneration received as an employee of the foreign enterprise.
3. Section 10(6)(viii) – Remuneration received for employment on a foreign ship.
Exemption under section 10(6) is available only to an individual who is not a citizen of India. The present article thoroughly covers all the above exemptions.
Section 10(6)(ii) – Certain types of remuneration
Following types of remunerations are exempted under section 10(6)(ii) of the Income Tax Act –
1. The remuneration received, by an individual who is not a citizen of India, as an official or member of the staff of an embassy or high commission or legation or consulate or commission or the trade representation of the foreign state.
2. The remuneration received, by an individual who is not a citizen of India, as a trade commissioner or other official representative in India of the Government of the foreign state. It also includes the remuneration received by a member of the staff of any of those officials.
The above exemption is available only if the remuneration of the corresponding officials or member of staff of the Government of India in that country are also given similar exemption.
It should be noted that the above exemption is available only if the member of staff are subjects of the country represented. Also, they should not be engaged in any business or profession or employment in India other than as a member of such staff.
Section 10(6)(vi) – Remuneration received as an employee of the foreign enterprise
Eligible exemption-
- The amount of remuneration received, by an individual who is not a citizen of India, as an employee of the foreign enterprise is available as an exemption under section 10(6)(vi).
- The said remuneration should have been received for services rendered during his stay in India.
- The exemption is available only if the below mentioned conditions are satisfied.
Conditions to be satisfied to avail the exemption-
1. The foreign enterprise, paying the remuneration, should not have been engaged in any type of trade or business in India.
2. The stay of the employee should not exceed a period of 90 days in a previous year in aggregate.
3. The remuneration should not be liable to be deducted from the income of the employer chargeable under the Act.
Section 10(6)(viii) – Remuneration received for employment on a foreign ship
Eligible exemption and conditions thereon-
- The exemption is available towards any income received or due to any individual being a non-resident. Such income should be chargeable under the head ‘Salary’.
- The remuneration should have been received towards the services rendered in connection with his employment on a foreign ship.
- The total stay of the employee in India should not exceed the aggregate period of 90 days in the previous year.
Section 10(6)(xi) – Remuneration received by an employee of the foreign government
Eligible exemption-
Remuneration received by, an individual who is not a citizen in India, an employee of the foreign government. The remuneration should have been received by the employee during his stay in India. The employee should have received the remuneration for his training in any establishment or office or any undertaking owned by any of the following concerns –
- The Government; or
- A company wholly owned by the Central Government or the State Government or the company partly owned by the Central Government or the State Government; or
- Any subsidiary company of the company referred above; or
- Any society registered under the Societies Registration Act, 1860 or under any other corresponding law. The society should be wholly or partly financed by the Central Government or the State Government; or
- Any corporation (established by or under a Central Act or State Act or Provincial Act.
