https://www.taxtmi.com/caselaws?id=206996 Non-compete payments made to two employees were treated as employment-linked receipts and characterised as salary or profit in lieu of salary. The receipts were held not to be business income or taxable under the residuary head. Under the India-USA DTAA, the payments were treated as dependent personal services remuneration accruing in the USA, so they were not taxable in India. Because the amounts were not chargeable to tax in India, the payer was not required to seek determination under section 195(2), and could not be treated as an assessee in default under section 201(1) or made liable to interest under section 201(1A). en-us Fri, 25 Feb 2011 00:00:00 +0530 Thu, 24 Nov 2011 08:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206996 Non-compete payments made to two employees were treated as employment-linked receipts and characterised as salary or profit in lieu of salary. The receipts were held not to be business income or taxable under the residuary head. Under the India-USA DTAA, the payments were treated as dependent personal services remuneration accruing in the USA, so they were not taxable in India. Because the amounts were not chargeable to tax in India, the payer was not required to seek determination under section 195(2), and could not be treated as an assessee in default under section 201(1) or made liable to interest under section 201(1A). Case-Laws Income Tax Fri, 25 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206996