When Mr Saxena from Bommenahalli Village, Bidarahalli Hobli, Bangalore Rural, got Rs 16 lakh as per diem payments from a multinational company’s Indian branch, he didn’t pay any tax in India and also failed to report this in his Indian Income Tax Return. Subsequently, he received a tax notice asking for an explanation in this matter.
In the end, he won the case in ITAT Delhi, as the Income Tax Appellate Tribunal (ITAT) Delhi determined that if a non-resident salaried person receives 'per-diem' payments from their Indian employer while working abroad, those payments aren’t taxable under Article 16 of the India-UK Double Tax Avoidance Treaty (DTAA).
