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Taxation of employees of foreign embassy

Deepak Gwalani (Student CA Final ) (32 Points)

13 July 2015

Hello,

There is one Employee (Who is Indian Citizen by birth ) & works in Foreign Embassy (i.e. Spain Embassy ) in india .

Can anyone guide is she require to file return & pay taxes as per Indian Laws or as per Spain Laws?

Kindly quote the sections to justify the same.

Thanks in adavcne. Reply asap

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2 Replies

Deepak Jain (CA) (69 Points)
Replied 16 August 2015

Remuneration received by specified diplomats and their staff [Section 10(6)(ii)]

As per section 10(6)(ii), in case of an individual who is not a citizen of India, remuneration received by him as an official (by whatever name called) of an embassy, high Commission, legation, Commission, consulate or trade representative of a foreign State, or member of the staff of any of that official is exempt from tax, if corresponding Indian official in that foreign country enjoys a similar exemption.

In my view the condition of not a citizen of India is applicable for salary received by official (by whatever name called) of an embassy, high Commission, legation, Commission, consulate or trade representative of a foreign State. For other employees working as member of the staff of any of that official is exempt from tax and for this citizenship is not any criteria.