Taxation - Incentives, Rebates and Allowances
General
Incentives|Income Tax Rebates|
Relief for Foriegners| Concessions to NRI's|Incentives for the Corporate
sector|Concessions for
specific sectors
Taxation - Incentives, Rebates and Allowances - Relief for Foreign Nationals
Foreigners are entitled to certain special
concessions as follows.
- Remuneration received by a foreigner as an employee of a foreign
enterprise for services rendered in India is not subject to Indian
income tax, provided :
- The foreign enterprise is not engaged in any trade or business in
India;
- The foreigner is not present in India for more than 90 days in
that year; and
- The remuneration is not liable to be deducted in computing the
employer's taxable income in India.
- The foreign enterprise is not engaged in any trade or business in
India;
- A foreigner (including a nonresident Indian) who was not resident in
India in any of the four financial years immediately preceding the year
of arrival in India is entitled to a special tax concession, if :
- The foreigner has specialized knowledge and experience in
construction or manufacturing operations, mining, generation of
electricity or any other form of power, agriculture, animal
husbandry, dairy farming, deep-sea fishing, shipbuilding, grading
and evaluation of diamonds for diamond export or import trade,
cookery, information technology (including computer architecture
systems, platforms and associated technology), a software
development process and tools, or such other fields as the central
government may specify; and
The individual is employed in any business in India in a capacity in which specialized knowledge and experience are used.
Note: During the first 48 months commencing from the date of arrival in India, the remuneration will not be subject to any further tax in such a foreigner's hands if the employer bears the tax on the remuneration.
- The foreigner has specialized knowledge and experience in
construction or manufacturing operations, mining, generation of
electricity or any other form of power, agriculture, animal
husbandry, dairy farming, deep-sea fishing, shipbuilding, grading
and evaluation of diamonds for diamond export or import trade,
cookery, information technology (including computer architecture
systems, platforms and associated technology), a software
development process and tools, or such other fields as the central
government may specify; and
- A visiting foreign professor who teaches in any university or
educational institution in India land whose contact of service is
approved by the central government is exempt from tax on remuneration
received during the first 36 months from the date of arrival in India,
provided the teacher was not resident in India in any of the four
financial years immediately preceding the year of arrival in India. If
the foreigner continues in employment in India thereafter, the
remuneration of the following 24 months is taxable; however, if the tax
is paid by the university or education institution, there is no further
tax liability.
- Salary received by a nonresident foreigner in connection with
employment on a foreign ship is exempt from tax if the employee's stay
in India during a year does not exceed 90 days.
- Special exemptions under specified circumstances are available for
the following :
- Amounts receivable from a foreign government or a foreign body by
a foreigner for undertaking research in India under an approved
scheme;
- Remuneration received by employees of a foreign government during
training with the Indian government or in an Indian government
undertaking (applicable to individuals assigned to India under
cooperative technical assistance programs in accordance with
agreements between the Indian government and a foreign government);
and
- Remuneration received by nonresident expatriates in connection with the filming of motion pictures by nonresident producers.
- Amounts receivable from a foreign government or a foreign body by
a foreigner for undertaking research in India under an approved
scheme;