Place of Accrual of Salary

Any Income from Salaries for service rendered in India

is deemed to accrue or arise in India

It doesn’t matter where salary is received, it may be received in India or outside India

Example

Pension received outside India for services rendered in India,it will be deemed to accrue or arise in India and hence taxable

Example

Leave salary paid outside India for leaves earned in India will be deemed to accrue or arise in India and hence taxable

Exception

Salary paid outside India by Govenrment of India

to Indian citizen

for services rendered outside India

will also be deemed to accrue or arise in India

However,as per Section 10(7),

1)If a government employee renders any service abroad

then all allowance and perquisites are fully exempt .

[Section 10 (7)]