(3)Any income falling under the head "Salaries" shall be deemed to accrue or arise in India, if it is—(a)earned in India, and any income payable for,—(i)services rendered in India; and(ii)the rest period or leave period which is preceded and succeeded by services rendered in India and forms part of the service contract of employment, shall be regarded as income earned in India;(b)payable by the Government to an Indian citizen for services rendered outside India.
