Employer’s contribution towards overseas social security – not taxable : ITAT Delhi

Background:- Recently, the Income Tax Appellate Tribunal, New Delhi (ACIT Vs Harashima Naoki Tashio, ITA No. 4634/Del/) has held that the employer’s contribution towards the social security in the home country of the employee is not taxable in the hands of the employee as a perquisite. Facts of the case Harashima Tashio (‘the employee’), a Japanese national, was working as a General Manager with an Indian company. The employee’s residential status for the financial year 2003-04 was that of a ‘resident but not ordinarily resident’ In the return of income filed for the said financi...