Amended and updated notes on section 80R of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc.
Chapter VIA (Sections 80A to 80U) of the Income Tax Act 1961 deals with the provisions related to deductions to be made in computing total income. Section 80R of IT Act 1961-2023 provides for deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc..
Recently, we have discussed in detail section 80QQB (Deduction in respect of royalty income, etc., of authors of certain books other than text-books) of IT Act 1961. Today, we learn the provisions of section 80R of Income-tax Act 1961. The amended provision of section 80R is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 80R of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section 80R: Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers
Where the gross total income of an individual who is a citizen of India includes any remuneration received by him outside India from any University or other educational institution established outside India or any other association or body established outside India, for any service rendered by him during his stay outside India in his capacity as a professor, teacher or research worker in such University, institution, association or body, there shall 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 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.
Explanation: For the purposes of this section, the expression “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.