Foreign assignment allowance received in India by a non-resident individual towards services rendered outside India will not fall within the scope of total income under section 5(2) of the Act
Recently, the Kolkata Tribunal in Santanu Sanyal v. ACIT (I.T.A. No.: 41/KOL/2024), dated 23.07.2024 has held that the foreign assignment allowance received in India by a non-resident individual towards services rendered outside India will not fall within the scope of total income under section 5(2) of the Act. It is further held that the amount will also not be taxable on receipt basis since the amount is credited to the Axis travel currency card of the taxpayer outside India.
Further, stock option prerequisites accrued to the taxpayer for the services rendered outside India from the date of grant to the date of vesting will not form part of the scope of the total income of the non-resident.
The Copy order is as under:
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