Deduction in respect of remuneration received for services rendered outside India
5[Deduction in respect of remuneration received for services rendered outside India.
80RRA. (1) Where the gross total income of an individual who is a citizen of India includes any remuneration received by him in foreign currency from any employer (being a foreign employer or an Indian concern) for any service rendered by him outside India, there shall in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the individual, a deduction from such remuneration of an amount equal to fifty per cent thereof :
Provided that where the individual renders continuous service outside India under or for such employer for a period exceeding thirty-six months, no deduction under this section shall be allowed in respect of the remuneration for such service relating to any period after the expiry of the thirty-six months aforesaid.
(2) The deduction under this section shall be allowed—
(i) in the case of an individual who is or was, immediately before undertaking such service, in the employment of the Central Government or any State Government, only if such service is sponsored by the Central Government;
(ii) in the case of any other individual, only if he is a technician and the terms and conditions of his service outside India are approved in this behalf by the Central Government or the prescribed authority.
Explanation : For the purposes of this section—
6(a) “foreign currency” shall have the meaning assigned to it in the Foreign Exchange Regulation Act, 1973 (46 of 1973);
(b) “foreign employer” means,—
(i) the Government of a foreign State ; or
(ii) a foreign enterprise ; or
(iii) any association or body established outside India ;
(c) “technician” means a person having specialised knowledge and experience in—
(i) constructional or manufacturing operations or mining or the generation or distribution of electricity or any other form of power; or
(ii) agriculture, animal husbandry, dairy farming, deep sea fishing or ship building; or
(iii) public administration or industrial or business management; or
(iv) accountancy; or
(v) any field of natural or applied science (including medical science) or social science ; or
6a(vi) any other field which the Board may prescribe in this behalf,
who is employed in a capacity in which such specialised knowledge and experience are actually utilised.]
5. Substituted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978. Original section was inserted by the Finance Act, 1975, w.e.f. 1-4-1975.
6. For definition of “foreign currency”, see footnote 11 on p. 1.39 ante.
6a. See rule 11C.
[AS AMENDED BY THE FINANCE ACT, 1986]