https://www.taxtmi.com/caselaws?id=349153 For resident assessees, salary income from abroad is discussed as taxable in India only on a net basis under section 5(1)(c), so foreign tax withheld in the USA is not to be grossed up into Indian taxable income. The foreign tax credit is to be worked out separately under Article 25 of the India-US tax treaty, and any computation based on adding back withheld US tax requires fresh consideration. The Medicare deduction is treated differently because it was contingent and did not create an immediate vested right; on that basis, it is not taxable as salary income in India. en-us Thu, 31 Aug 2017 00:00:00 +0530 Sat, 07 Oct 2017 09:00:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=349153 For resident assessees, salary income from abroad is discussed as taxable in India only on a net basis under section 5(1)(c), so foreign tax withheld in the USA is not to be grossed up into Indian taxable income. The foreign tax credit is to be worked out separately under Article 25 of the India-US tax treaty, and any computation based on adding back withheld US tax requires fresh consideration. The Medicare deduction is treated differently because it was contingent and did not create an immediate vested right; on that basis, it is not taxable as salary income in India. Case-Laws Income Tax Thu, 31 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=349153