Salary by Indian citizen as Government employee for service abroad is:
ATaxable under Section 9(1)(iii) deemed to accrue
BExempt as foreign salary (per relevant Section)
CTaxable at DTAA rates
DTaxable only if remitted
Answer & Solution
Correct answer: A. Taxable under Section 9(1)(iii) deemed to accrue
1. Section 9(1)(iii) deems salary by Govt of India to Indian citizen for services outside India to accrue in India.
2. Such salary is chargeable in India regardless of residential status.
3. However, allowances and perquisites for such service outside India are exempt under Section 10(7).
_Source: ICAI BoS CA Final Paper 7, Ch 1 "Basic Concepts"_
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