If such people work from within India,they are obviously residents of India and income received or accruing to them from anywhere in the world is taxable.So this income too is taxable in India.All the expenses that they incur wholly and exclusively for earning this income would be deductible like depreciation on equipment,other working expenses,etc.However,if tax is being deducted in other countries as well for this income,they can take credit of that tax as per the double taxation avoidance agreement,if any,exists between India and the other country or if no such agreement exists,as per the provisions of sec 91 of the Income Tax act 1961,which allows credit of tax paid in a foreign country by Indian residents for incomes earned abroad.
