Section 80 RRA of Income Tax Act "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-
(i) sixty per cent of such remuneration for an assessment
year beginning on the 1st day of April, 2001;
(ii) forty-five per cent of such remuneration for an
assessment year beginning on the 1st day of April, 2002;
(iii) thirty per cent of such remuneration for an assessment
year beginning on the 1st day of April, 2003;
(iv) fifteen per cent of such remuneration for an assessment
year beginning on the 1st day of April, 2004,
as is brought into India by, or on behalf of, the assessee
in convertible foreign exchange within a period of six
months from the end of the previous year or within such
further period as the competent authority may allow in this
behalf and no deduction shall be allowed in respect of the
assessment year beginning on the 1st day of April, 2005 and
any subsequent assessment year :
Provided that no deduction under this sub-section shall be
allowed unless the assessee furnishes a certificate, in the
prescribed form, along with the return of income, certifying
that the deduction has been correctly claimed in accordance
with the provisions of this section.
(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,-
(a) "foreign currency" shall have the meaning assigned to it
in the Foreign Exchange Management Act, 1999 (42 of 1999);
(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
(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;
(d) "competent authority" means the Reserve Bank of India or
such other authority as is authorised under any law for the
time being in force for regulating payments and dealings in
foreign exchange.