9.0 A discussion about computation of income chargeable under the head 'salary' is made in para 4.2 of Chapter IV. Certain special provisions applicable to non-residents and/or non-citizens is made in this chapter.

9.1     Remuneration of Technicians (Sec.  [10(5B)]

Non-resident individuals rendering services as a technician in the employment of:-

Who are getting tax-free salary are not liable to be assessed in respect of the tax paid by the employers on his behalf. Such exemption is available for a period of 48 months commencing from the date of his arrival in India, In order to avail of such exemption it is necessary that the technician should not have been resident in India in any of the four financial years immediately preceding the year of arrival. This condition can, however, be waived in suitable cases in the case of those employed for designing, erection or commissioning machinery or plant or supervising activities connected with such designing, erection or commissioning.

9.1.1 If the employment commenced prior to 1st April, 1993, the exemption is available only to those non-residents who were not the citizens of India.

9.1.2 Technicians are the persons having specialised knowledge and experience in constructional or manufacturing operations, mining, power generation, agriculture, animal husbandry, dairy farming, deep sea fishing, ship building or any other field notified by the Central Government. The Central Government has notified the field of gracing and evaluation of diamond for export or import, cookery and information technology including computer architecture system, platforms and associated technology, soft­ware development process and tools, for this purpose.

9.2     Remuneration of officials of embassies etc. [Sec. 10(6)(ii)]

Remuneration as officials or as member of the staff of Embassy, high commission, legation, commission, consulate or trade representatives of a foreign state is exempt from tax. For members of staff to enjoy exemption, it is necessary that they are the subjects of such foreign state and are not engaged in any business or profession or employment in India. Remuneration as Trade Commissioner or other official representative is exempt on reciprocal basis i.e. only if their Indian counter-parts enjoy similar benefits in that country.

9.3     Remuneration of employees of foreign enterprises [Sec, 10(6)(vi)]

Such remuneration for services rendered during stay in India is exempt if:-

9.4      Remuneration for employment on a foreign ship [Sec. 10(6)(viii)]

Remuneration of a non-resident for services rendered in connec­tion with his employment on a foreign ship is exempt from tax if his total stay in India does not exceed ninety days in the previous year.

9.5      Training Stipend [Sec. 10(6)(xi)]

Remuneration received by an employee of foreign government in connection with his training in any undertaking owned by the Government or government owned company or its subsidiary or a corporation or a government financed registered society, is exempt from tax.

9.6      Remuneration under co-operative technical assistance programs or technical assistance grant [Sec. 10(8), 10(8A), 10(8B) and 10(9)]

Remuneration of a person assigned to duties in India in connection with any cooperative technical assistance programs and projects in accordance with an agreement between India and foreign government is exempt if such remuneration is received directly or indirectly from that foreign government and if the terms of the agreement between the two governments provide for such exemption. Any other income of such person which accrues outside India is also exempt from tax if such income has suffered tax in the country of accrual.

Remuneration of a consultant engaged under a technical assistance program which is paid out of funds made available to an international organisation under a technical assistance grant agreement between such organisation and the foreign govern­ment is exempt from tax if the consultant is either not a citizen of India or is not ordinarily resident in India or is a non-resident and the technical assistance is in accordance with an agreement between the Government of India and that foreign organisation. It is necessary that the engagement of such consultant is approved by the prescribed authority. If such consultant employs  any other person in connection with such technical assistance program and pays remuneration to him, such remuneration is also exempt if the person employed by the consultant is either not a citizen of India or is not ordinarily resident in India. The contract of service of such individual should be also approved by the prescribed authority.

Any other income (apart from remuneration) of the consultant or the person employed by him or any income of their family members which accrues to them outside India is also exempt from tax if such income suffers tax in the country where it accrues.