Retirement benefits from foreign employer received by 'Not Ordinarily Resident' employee not taxable in India

Payment received by assessee towards retirement benefit/severance/vacation engagement from the 'Non Resident' employer based in USA on termination of its employment in USA cannot be taxed in India as the status of the assessee during the year in question was that of 'Not Ordinary Resident'.

In other words, where the recipient employee is 'Not Ordinarily Resident' in India, in terms of proviso to section 5(1)(c), read with section 9(1)(ii), the retirement benefit received for the services rendered outside India cannot be taxed in India - CIT v. ANANT JAIN [2012] 21