Assessee, a non-resident Indian, was an employee of TCS Malaysia-For administrative convenience, a part of his salary for his services in Malaysia was paid in India by TCS India and TDS was deducted-Assessee filed his return claiming exemption for salary earned in Malaysia under article 16 of DTAA between India and Malaysia. Assessing Officer rejected\u00a0 claim of exemption on ground that since assessee was a resident of Malaysia and a non-resident of India, he was not eligible to claim exemption under Article 16.CIT (A) held that the salary was received in India, hence taxable under section 5(2) of the Act.\u00a0\u00a0 On appeal, the Tribunal held that income will not be treated as being received in India solely on the basis that such income was received or deemed to be received in India.\u00a0 To determine the point of taxability, it is necessary to find where the income to the person concerned has accrued, which is equated to the place where services were rendered. Therefore, salary received in India by a Non-Resident employee in respect of services rendered outside India is said to be accrued outside India and cannot be taxable in India and is exempt under Article 16. (AY. 2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(ii): Income deemed to accrue or arise in India-Salaries-Non-resident-Employed with TCS Malaysia-Rendered his services in Malaysia-Taxable in Malaysia even though the same was received in India-DTAA-India-Malaysia [S.5(2) Art. 16]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61045","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fSB","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61045"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61045\/revisions"}],"predecessor-version":[{"id":61046,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61045\/revisions\/61046"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}