Pay of employees deputed abroad isn't taxable in India, TDS doesn't apply

A new AAR ruling provides relief to employees deputed overseas and who receive salaries abroad as well as in India

Individuals deputed abroad and taxed in another country would no longer be subjected to double taxation. Last week, Authority for Advance Ruling (AAR) said that individuals who are non-residents according to the Income-tax Act (I-T Act), don’t need to pay tax on salary received in India. The ruling provides relief to employees who are deputed overseas and receive a salary abroad as well as in India.

The double taxation of salary has been controversial due to conflicting laws. “Section 9 of the I-T Act says an individual who earns income in India or deemed to have earned income in the