Mr. Ross, an Australian citizen, is employed in the Indian embassy in Australia. He is a non-resident in India for A.Y. 2024-25. He received salary…

CA Intermediate · Taxation · MTP · September 2024
Mr. Ross, an Australian citizen, is employed in the Indian embassy in Australia. He is a non-resident in India for A.Y. 2024-25. He received salary and allowances in Australia from the Government of India for the year ended 31.03.2024 for services rendered by him in Australia. In addition, he was allowed perquisites by the Government. Which of the following statements are correct?
(A) Salary, allowances and perquisites received outside India are not taxable in the hands of Mr. Ross, since he is non-resident
(B) Salary, allowances and perquisites received outside India by Mr. Ross are taxable in India since they are deemed to accrue or arise in India
(C) Salary received by Mr. Ross is taxable in India but allowances and perquisites are exempt
(D) Salary received by Mr. Ross is exempt in India but allowances and perquisites are taxable

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Salary, allowances and perquisites received outside India are not taxable in the hands of Mr. Ross, since he is non-resident

Topics: Paper 3A: Income Tax Laws

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