WHAT IS THE PLACE OF ACCRUAL OF SALARY?

Sec. 9, Income chargeable under the head Salaries payable by the Government to a citizen of India for service provided outside India will be deemed to accrue or arise in India. if a citizen of India service outside India and receives salary from India, it would be taxable as salary to have accrued in India. Any allowance or perquisites paid or allowed outside India by the Government to a citizen of India for rendering services outside India is exempt from tax [Sec. 10(7)]. If a Foreign citizen renders service in India, any way salary is taxable in India & the employer is duty bound to deduct TDS.

Section 9 – Place of accrual of salary SERVICE RENDERED IN INDIA: Sec. 9, Salary earned in India is deemed to accrue or arise in India even if – (a) Paid outside India. (b) Paid or payable after the contract of employment in India comes to an end. Salary paid by Government of India to a foreign citizen shall be chargeable to tax if service is done in India. Leave salary paid abroad in respect of leave earned in India is deemed to accrue or arise in India. If an employee gets pension paid abroad in respect of services in India, the same will be deemed to accrue or arise in India SERVICES RENDERED OUTSIDE INDIA: Sec. 9, Income chargeable under the head Salaries payable by the Government to a citizen of India for service provided outside India will be deemed to accrue or arise in India. if a citizen of India service outside India and receives salary from India, it would be taxable as salary to have accrued in India. Any allowance or perquisites paid or allowed outside India by the Government to a citizen of India for rendering services outside India is exempt from tax [Sec. 10(7)]. If a Foreign citizen renders service in India, any way salary is taxable in India & the employer is duty bound to deduct TDS.

PLACE OF ACCRUAL OF SALARY Hi, Place of accrual of salary is the place where services are rendered by the employee So even if salary is paid to non resident outside india but the services were rendered in india the salary was deemed to accrue or arise in india Also if a citizen of india gives service outside india and receives salary from india it would be taxabale as salary which is deemed to accrue or arise in india . Thanks

Hie Roshni, **In simple terms, Place of Accrual of Salary is a place from where employee gets salary.** In other words, As the employer-employee relationship existence is necessary between payer and payee to determine a particular receipt as Salary, the place of accrual of salary has also its importance as per Income Tax Act, 1961. The simple rule is that Salary accrues at the place where the services are rendered. Therefore, even if a non-resident is paid salary outside India in respect of services rendered in India, it is deemed to accrue or arise in India. Consequently, salary becomes taxable in those cases subject to exemption available to foreign nationals. However, if a citizen of India service outside India and receives salary from India, it would be taxable as salary to have accrued in India like salary paid to an Indian citizen by the Government is deemed to accrue or arise in India even though it is for the services rendered outside India. However, exemption is provided in respect of allowances and perquisites granted in such a case.