https://www.taxtmi.com/caselaws?id=396057 Payments made under non-compete agreements after the recipients became employees were treated on the facts as salary-related receipts, falling within the inclusive scope of salary and profits in lieu of salary. Because the employees rendered services outside India and received the remuneration in the United States, Article 16(1) of the India-USA DTAA applied, and the sums were not taxable in India. Once the payments were not chargeable to tax in India, no obligation to deduct tax at source arose, and the payer could not be treated as an assessee in default under Sections 201(1) and 201(1A). en-us Wed, 10 Jun 2020 00:00:00 +0530 Mon, 09 Nov 2020 17:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396057 Payments made under non-compete agreements after the recipients became employees were treated on the facts as salary-related receipts, falling within the inclusive scope of salary and profits in lieu of salary. Because the employees rendered services outside India and received the remuneration in the United States, Article 16(1) of the India-USA DTAA applied, and the sums were not taxable in India. Once the payments were not chargeable to tax in India, no obligation to deduct tax at source arose, and the payer could not be treated as an assessee in default under Sections 201(1) and 201(1A). Case-Laws Income Tax Wed, 10 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396057