India-UK DTAA Saves ₹17L: Is Your NR Salary Taxed?
An Indian employee working in the UK had ₹17.25 lakh added to his taxable income by mistake. A Delhi tax tribunal ruled this was wrong — the India-UK tax treaty protected him. If you work abroad, this case could save you lakhs.
That ₹17.25L wrongly taxed = 5 years of chai for an average Indian family ☕
Your overseas salary can be wrongly taxed in India — here's how to fight back
Key Takeaways
Check your residential status: if you spent 182+ days outside India in a financial year, you qualify as a Non-Resident — your foreign salary may not be taxable in India at all.
Claim DTAA protection when filing your ITR — mention the relevant treaty article in your return and attach Form 10F and a Tax Residency Certificate (TRC) from the foreign country.
If your employer has already deducted TDS on overseas income, file for a refund by submitting the correct ITR with DTAA details — do not let excess tax go unclaimed.
An Indian employee working in the UK had ₹17.25 lakh added to his taxable income by mistake. A Delhi tax tribunal ruled this was wrong — the India-UK tax treaty protected him. If you work abroad, this case could save you lakhs.
Here's what happened: ITAT Delhi ruled that per-diem payments received by an Indian employee for work done in the UK are NOT taxable in India under Article 16 of the India-UK Double Tax Avoidance Agreement.. The income tax department had wrongly added ₹17.25 lakh as taxable salary, even though the employee was a non-resident Indian (NRI) working outside India during that period.. India has DTAA treaties with 90+ countries — these treaties prevent the same income from being taxed twice, protecting salaried Indians working or deputed abroad..
What you should do: Check your residential status: if you spent 182+ days outside India in a financial year, you qualify as a Non-Resident — your foreign salary may not be taxable in India at all.. Claim DTAA protection when filing your ITR — mention the relevant treaty article in your return and attach Form 10F and a Tax Residency Certificate (TRC) from the foreign country.. If your employer has already deducted TDS on overseas income, file for a refund by submitting the correct ITR with DTAA details — do not let excess tax go unclaimed..
Per-diem and overseas allowances paid by your Indian employer for foreign deputation are often misclassified as Indian salary. A DTAA claim can make the entire amount tax-free — consult a CA before filing.
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- [1]“Rs 17.25 lakh income of an employee was added as taxable salary despite working in UK; ITAT Delhi gives him relief under India-UK DTAA” Wealth-Economic Times · 23 Jun 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.