Non-compete fees paid to employee is part of salary & hence Not Taxable in India as per DTAA

Director of Income-Tax Vs Sasken Communication Technologies Ltd. (Karnataka High Court) The issue under consideration is whether the amount paid to the employees under the non-compete agreement is covered by the expression ‘salary/profits in lieu of salary’ or not? and If not then whether the TDS will be applicable or not? In the present case, two employees was in the employment of M/s SNSL a subsidiary company of the assessee and were employed as Chief Executive Officer and Chief Operating Officer respectively. The subsidiary company merged with the assessee. The assessee, therefore, offe...