Explain the provisions relating to exemption of income for nonresident assessee.

The provisions relating to exemption of income for nonresident assessee:

1) Income of interest on some securities or bonds by a non-resident [Sec.10 (4)] (with effect from 2006-07).

2) Interest on saving certificates [Sec.10 (4B)] -This exemption is available to non-resident individuals of Indian origin or Indian citizens who has purchased saving certificates from outside India by foreign currency.

3) Tax paid on remuneration to foreign technicians [Sec.10 (5B)] -Now it’s not exemption with effect from AY 2003-04.

4) Income as an employee of a foreign enterprise[Sec.10(6)(vi)]-This exemption is allowed if such employee stays in India for more than 90 days during PY and such enterprise has no trade of foreign concern in India.

5) Remuneration during training period [Sec.10 (6) (xi)] -It should be received by an employee of foreign company from foreign Government.

7) Income of foreign companies for providing technical services in Exempted Incomes enterprises connected security in India [Sec.10(6c)]

8) Allowances or perquisites outside India [Sec.10 (7)] – Such allowance or perquisites is given by Government of India to citizen of India

9) Remuneration received from Foreign Government under Cooperative Technical Assistance Programme [Sec.10 (8)].

10) Income of an advisor [Sec. 10(8A)] This exemption is allowed for the appointment of advisor under agreement between International Organization and Central Government and remuneration is paid to him is out of its technical Assistance grant.

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