Plz answer it..

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allowances paid by any employer outside india would be wholly exempted from income tax is this statement true or false please comment on it..with reason
Replies (3)

Please specifically mention few allowances which the employer is providing outside India to its employee and clear whether the employee for that particular asst year falls in the category of resident or non-resident.

Normally section 10 (7) deals with your querry,

i.e "any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India, is not included in the total income"

Mr. Ashish has answered correctly, but this clause will be applicable when two conditions will be fulfilled together:

1. Employer must be government

2. Employee must be citizen of India and should render the service outside India


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