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2016 (4) TMI 1323 - AT - Income TaxCorrectness of TDS deducted by the Indian Employer - Taxability of salary income of non-resident - exemption claimed under Section 5(2) - taxability of foreign allowances - it was contended by the assessee that, assessee was sent on a foreign assignment and received salary as well as allowances. The salary was to be taxed in India. However, the allowances cannot be taxed in India, as it is received outside India and the employer deducted TDS wrongly. - Held that:- it is an admitted fact that the assessee has remained as an employee of IBM India Pvt. Ltd. and the law of land would remain applicable to the assessee and further, salary was continued to be paid under home location salary plan. As the salary was paid to assessee’s home location bank, TDS was rightly deducted by IBM India Pvt. Ltd. Accordingly, Form 16 was issued to the assessee. - Decided against the assessee.
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