Employed in (U.S.) Indian embassy (indian citizen)

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mr. X is a indian citizen, posted in US (indian embassy) payment received from indian govt. Whether he is liable to file return and pay tax. TDS is also deducted by indian govt. What are the benefits along with sec.

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Salary received by an Indian citizen from Indian Government being his / her employer for rendering services outside India, will be deemed to be accrue or arise from India u/s-9(1)(iii). However, all other perquisites as well as allowances received from Indian Government will be exempted u/s-10(7), irrespective of whether the assessee is a resident or non-resident.

Since TDS has been deducted, though it may not be mandatory u/s-139(1), provided the GTI is below the exemption limits but it will be beneficial to file ITR to claim refund or to carry forward of loss, if any. Besides, a notice may be issued to the assessee for non-filing of ITR since TDS has already been deducted. Moreover, filing of ITR will also be beneficial for getting any loan in future as it's a standard income proof accepted not only in India but globally too.

Hope ur doubt is cleared now...


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