Taxable Income of RNOR

[Reshma kochar]

Dear Experts,

Facts of the case:

A person is rendering services to an Indian Group co, and receiving salary from India and foreign head office. also he is visiting other countries as well. His status is of RNOR. Does the salary income from foreign co taxable in India?

My understanding:

Reference to Section 5(1) Income which is accues or arise to RNOR outside india shall not be including in his total income if it is not derived from a business controlled in or a profession set up in india.

Reading section 9(1)(ii) income falls under the head salary will be accrues or arises in India, if it is earned in India. and explanation (a) says it will be earned in india if the services are rendered in india.

concerning both the sections, under section 9(1)(ii)a salary  income of RNOR from the foreign company only for the period of stay in india will be accrue and arise in india as services are rendered in india.  

Please correct my views, if they are not in line.

Also please clarify the meaning of word 'derived' in section 5(1)

Regards,

Reshma

AI Summary

Foreign Salary Taxation for RNOR Status: Income from Services in India is Taxable per Sections 5(1) and 9(1)(ii) A person with RNOR status is receiving salary from both an Indian company and a foreign head office while providing services in India and visiting other countries. The query seeks clarification on whether the foreign salary is taxable in India. According to Section 5(1), income accruing to an RNOR outside India is not included in total income unless derived from a business or profession in India. Section 9(1)(ii) states that salary earned in India is taxable if services are rendered there. Therefore, only the salary for services rendered in India is taxable. Clarification on the term 'derived' in Section 5(1) is also requested.