India: Students, trainees and researchers
Students, trainees and researchers from India are exempt from United Kingdom tax on gifts from abroad for the purpose of their maintenance, education, study, research or training, on certain grants and awards, and, in certain circumstances, on their earnings in the United Kingdom. The exemption does not extend to remuneration as an articled clerk or for services rendered to the person providing the training, and is not, in any case, to be given for a period of more than five years.
There is a further exemption from United Kingdom tax given to an individual from India who is present in the United Kingdom for a period of less than 12 months, who is employed by a resident of India and who is studying at a university etc. His earnings for services performed in the United Kingdom, if they do not exceed £1,500 or its Indian currency equivalent, are exempt from United Kingdom tax. Individuals who are or were residents of India and who participate in United Kingdom sponsored study, research etc. programmes are also exempt from United Kingdom tax for a period not exceeding twelve months on payments made by the Indian government for the purpose of their maintenance, study etc. (Article 21).
See also the guidance in DT1930 and 1931 and refer any case of difficulty to Employment Income, Technical.