Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a non-resident for A.Y. 2024-25. He received salary and allowances in Australia from the Government of India for the year ended 31-3-2

CS Executive · Tax Laws · PYQS · June 2024
Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a non-resident for A.Y. 2024-25. He received salary and allowances in Australia from the Government of India for the year ended 31-3-24 for services rendered by him in Australia. In addition, he was allowed perquisites by the Government. Which of the following statements is correct?
(A) Salary, allowances and perquisites received outside India are not taxable in the hands of Mr. Ramesh, since he is non-resident.
(B) Salary, allowances and perquisites received outside India by Mr. Ramesh are taxable in India since they are deemed to accrue or arise in India
(C) Salary received by Mr. Ramesh is taxable in India but allowances and perquisites are exempt.
(D) Salary received by Mr. Ramesh is exempt in India but allowances and perquisites are taxable

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax

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