India - Income Tax Act 2010 - Saarc

1.49 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(8B)28[(8A) in the case of a consultant—(a) any remuneration or fee received by him or it, directly orindirectly, out of the funds made available to an internationalorganisation [hereafter referred to in this clause and clause (8B)as the agency] under a technical assistance grant agreementbetween the agency and the Government of a foreign State ; and(b) any other income which accrues or arises to him or it outsideIndia, and is not deemed to accrue or arise in India, in respect ofwhich such consultant is required to pay any income or socialsecurity tax to the Government of the country of his or its origin.Explanation.—In this clause, “consultant” means—(i) any individual, who is either not a citizen of India or, being acitizen of India, is not ordinarily resident in India ; or(ii) any other person, being a non-resident,engaged by the agency for rendering technical services in India inconnection with any technical assistance programme or project,provided the following conditions are fulfilled, namely :—(1) the technical assistance is in accordance with an agreemententered into by the Central Government and the agency ; and(2) the agreement relating to the engagement of the consultant isapproved by the prescribed authority 29 for the purposes of thisclause ;(8B) in the case of an individual who is assigned to duties in India inconnection with any technical assistance programme and project inaccordance with an agreement entered into by the Central Governmentand the agency—(a) the remuneration received by him, directly or indirectly, for suchduties from any consultant referred to in clause (8A) ; and(b) any other income of such individual which accrues or arisesoutside India, and is not deemed to accrue or arise in India, inrespect of which such individual is required to pay any income orsocial security tax to the country of his origin, provided thefollowing conditions are fulfilled, namely :—(i) the individual is an employee of the consultant referredto in clause (8A) and is either not a citizen of India or,being a citizen of India, is not ordinarily resident in India ;and(ii) the contract of service of such individual is approved by theprescribed authority 29 before the commencement of hisservice ;]28. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.29. The prescribed authority under rule 16B is Additional Secretary, Department ofEconomic Affairs in Ministry of Finance, Government of India in concurrence withMember (Income-tax), CBDT.