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Definition of "Allowances payable outside india"

Allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for services rendered outside India are exempt from tax. Students may remember that in such cases under section 9(1)(iii), the income chargeable under the head Salaries is deemed to accrue in India. The residential status of the recipient will, however, not affect this exemption.

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