IT pros can't avoid tax on foreign earnings

NEW DELHI: In a ruling which could affect tax payments of thousands of employees of Indian IT companies earning mega bucks on overseas assignments, the Authority of Advance Rulings (AAR) has said that that there was no escape from paying tax on the amount earned during a stint with the employer’s foreign affiliates.
If there was a deputation, income tax had to be paid either in India, if it had not already been paid abroad, and even a tax treaty would not rescue IT professionals.

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