BMC Associates says Replied on 25th April,2026 10:17 AM

When an assessee earns salary outside India, the taxability and treatment of perquisites depend primarily on the residential status and the scope of income under the Income Tax Act. If the assessee is a resident in India, then global income is taxable in India. This means that salary earned outside India will also be included in total income, and accordingly, perquisites related to such employment may also be considered for taxation, subject to applicable rules and exemptions. On the other hand, if the assessee is a non-resident, only income that is received in India or accrues/arises in India is taxable. In such cases, salary earned and received outside India is generally not taxable in India, and therefore perquisites linked to that foreign salary may not be considered. It is also important to evaluate whether the perquisites are provided in India or outside India, as well as the terms of employment. Certain perquisites may still be taxable if they are directly or indirectly linked to services rendered in India. Double Taxation Avoidance Agreements (DTAA) may also play a role in determining whether such income or perquisites are taxable in India or in the foreign country, helping to avoid double taxation. In practical situations, determining the correct tax treatment can be complex and requires careful analysis of residential status, place of accrual, and nature of benefits. This is why many individuals and businesses seek guidance from professional chartered accountant firms in Gurgaon. An experienced chartered accountant Gurgaon or a reputed CA firm in Gurgaon can provide clarity on cross-border taxation and perquisite valuation. Consulting a knowledgeable CA in Gurgaon ensures proper compliance with tax laws while optimizing tax liability and avoiding legal complications.