How is income from employment outside India taxed?

Income earned by a resident Indian from employment outside India is taxable in India based on residential status and source rules under Sections 5 and 9(1)(iii). Income received for services rendered in India is fully taxable, while income for services abroad may be partially exempt under tax treaties through the DTAA route.

Legal Provisions: Sections 5, 9(1)(iii), 16, and 90/91 of the Income Tax Act, 1961

Supporting Case Law:
– CIT v. Rafique A. Malik (2020) – Gujarat High Court – 429 ITR 187
– Link: https://indiankanoon.org/doc/159533958/
– Ratio: This case discussed the taxability of income earned from employment outside India by a resident Indian.

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Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.