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ITAT Chennai Clarifies Taxability of Salary for Services Rendered Abroad October 31, 2025
Published in: Alerts
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The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) held that salary received in India by a non-resident for services rendered entirely in Malaysia is not taxable in India. The Tribunal observed that under Section 9(1)(ii) of the Income-tax Act, 1961, salary income accrues where services are performed, not where payment is received.
It further held that, in line with Article 16 of the India–Malaysia DTAA, salaries of a Malaysian tax resident are taxable only in Malaysia unless the employment is exercised in India. The ruling reinforces that mere receipt of income in India does not attract taxation, providing clarity for NRIs working remotely from abroad.
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