https://www.taxtmi.com/caselaws?id=32752 SC held that TDS provisions in Chapter XVII-B are machinery linked to charging provisions and that s192(1) must be read with s9(1)(ii) (and its Explanation); payments characterized as salary under s9(1)(ii) attract TDS even if paid abroad in foreign currency. Tax-deductors were duty-bound to deduct tax on home salary/special allowances paid for services rendered in India. The AO is directed to examine each case: where the employee has paid tax, no action under s201(1); where tax remains unpaid, AO to recover the shortfall under s201(1). Penalties under s271C are quashed as the issue was nascent; departmental appeals partly allowed. en-us Wed, 25 Mar 2009 00:00:00 +0530 Fri, 29 May 2026 11:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32752 SC held that TDS provisions in Chapter XVII-B are machinery linked to charging provisions and that s192(1) must be read with s9(1)(ii) (and its Explanation); payments characterized as salary under s9(1)(ii) attract TDS even if paid abroad in foreign currency. Tax-deductors were duty-bound to deduct tax on home salary/special allowances paid for services rendered in India. The AO is directed to examine each case: where the employee has paid tax, no action under s201(1); where tax remains unpaid, AO to recover the shortfall under s201(1). Penalties under s271C are quashed as the issue was nascent; departmental appeals partly allowed. Case-Laws Income Tax Wed, 25 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32752