ANJALI (STUDENT) (56 Points)
24 March 2017The ITAT relied on earlier judicial pronouncements and held that salary income is a compensation for services rendered by an employee. Thus, salary income in the hands of the non-resident employee cannot be taxed in India, if the services are rendered outside India. The place of receipt of the appointment letter is immaterial.
The ITAT rejected the contention of the tax department that the salary amount credited to the bank account in India should be subject to tax. It observed that the employee had a lawful right to receive the salary amount at the place of employment (which is the location of the foreign employer outside India). The ITAT held: "The connotation of an income having been received and an amount having being received are qualitatively different. The salary 'amount' is received in India in this case but the salary 'income' is received outside India".
ANJALI
(STUDENT)
(56 Points)
Replied 24 March 2017
it means i can file return without paying any tax on this income.
where i can show this in ITR -2?
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
CAclubindia
