Income tax exemptions | India

Section 10(9) Income Tax Exemption for Foreign Income of Accompanying Family Members

Section 10(9) of the Income-tax Act, 1961 historically exempted specified foreign-source income of family members accompanying certain technical-assistance personnel to India. The exemption was withdrawn with effect from assessment year 2023-24.

Important current-law update: Section 10(9) does not apply to income of the previous year relevant to assessment year 2023-24 or any later assessment year. Accordingly, this exemption cannot be claimed for current income years merely because the former conditions are met.

What did Section 10(9) provide?

Under the former provision, income accruing or arising outside India to a qualifying family member accompanying an eligible individual to India could be excluded from taxable income, provided the foreign income was not deemed to accrue or arise in India and the family member was required to pay income tax or social security tax in the relevant foreign country.

Eligible assessee and family members

The eligible assessee was an individual family member accompanying a person covered by Section 10(8), Section 10(8A) or Section 10(8B). These provisions concerned specified foreign-government technical assistance personnel, qualifying consultants and certain employees working on technical-assistance programmes or projects.

Conditions for the historical exemption

The claimant was a member of the family of a person described in Section 10(8), 10(8A) or 10(8B), and accompanied that person to India.
The income accrued or arose outside India.
The income was not deemed to accrue or arise in India under Indian income-tax law.
The family member was required to pay income tax or social security tax on that income to the government of the relevant foreign state or the family member's country of origin, as applicable.
The income related to an assessment year before 2023-24, subject to the law applicable to that year.

Amount exempt under the former provision

Historical exemption amount: The full amount of qualifying foreign-source income was exempt; the clause did not specify a separate monetary ceiling.

Current position: No exemption under Section 10(9) is available from assessment year 2023-24 onwards.

Withdrawal from assessment year 2023-24

The Finance Act, 2022 inserted a proviso withdrawing the benefit of Section 10(9) for income of previous years relevant to assessment year 2023-24 and subsequent years. The related exemptions under Sections 10(8A) and 10(8B) were also subject to withdrawal provisions. The taxability of foreign income must instead be examined under the applicable income-tax law, residential status, source and deemed-accrual rules, and any relevant tax treaty.

For tax years beginning on or after 1 April 2026, consult the Income-tax Act, 2025 and applicable transitional provisions rather than assuming that a former exemption under the 1961 Act continues.

Illustrative example

Suppose a qualifying technical-assistance consultant came to India with a spouse who earned foreign-source investment income and was required to pay tax on it abroad. For an eligible year before assessment year 2023-24, the spouse could potentially claim Section 10(9), if every statutory condition was satisfied. For assessment year 2023-24 or later, Section 10(9) does not provide that exemption.

Official law and guidance

This article is general information. Eligibility and tax treatment depend on the relevant tax year, facts, and applicable statutory provisions.