India - Income Tax Act 2010 - Saarc

1.37 CH. II - BASIS OF CHARGE S. 9(a) service rendered in India; and(b) the rest period or leave period which is preceded and succeededby services rendered in India and forms part of the servicecontract of employment,shall be regarded as income earned in India ;](iii) income chargeable under the head “Salaries” payable by the Governmentto a citizen of India for service outside India ;(iv) a dividend paid by an Indian company outside India ;78[(v) income by way of interest payable by—(a) the Government ; or(b) a person who is a resident, except where the interest is payable inrespect of any debt incurred, or moneys borrowed and used, forthe purposes of a business or profession carried on by suchperson outside India or for the purposes of making or earning anyincome from any source outside India ; or(c) a person who is a non-resident, where the interest is payable inrespect of any debt incurred, or moneys borrowed and used, forthe purposes of a business or profession carried on by suchperson in India ;(vi) income by way of royalty 79 payable by—(a) the Government ; or(b) a person who is a resident, except where the royalty is payable inrespect of any right, property or information used or servicesutilised for the purposes of a business or profession carried on bysuch person outside India or for the purposes of making orearning any income from any source outside India ; or(c) a person who is a non-resident, where the royalty is payable inrespect of any right, property or information used or servicesutilised for the purposes of a business or profession carried on bysuch person in India or for the purposes of making or earning anyincome from any source in India :Provided that nothing contained in this clause shall apply in relationto so much of the income by way of royalty as consists of lump sumconsideration for the transfer outside India of, or the imparting ofinformation outside India in respect of, any data, documentation,drawing or specification relating to any patent, invention, model,design, secret formula or process or trade mark or similar property,if such income is payable in pursuance of an agreement made beforethe 1st day of April, 1976, and the agreement is approved by theCentral Government :78. Clauses (v), (vi) and (vii) inserted by the Finance Act, 1976, w.e.f. 1-6-1976.79. For the meaning of the term “royalty”, see Taxmann’s Direct Taxes Manual, Vol. 3.