SC Stays TDS Demand Notices Against SBI in Foreign LTC Reimbursement Case

State Bank of India Vs DCIT (Supreme Court of India)

The matter concerns the levy of tax and interest under Sections 201(1) and 201(1A) of the Income Tax Act, 1961, for failure to deduct tax at source (TDS) under Section 192(1) on reimbursement of Leave Travel Concession (LTC) involving foreign travel. A survey under Section 133A conducted on 26.12.2013 revealed that the assessee had not deducted TDS on LTC reimbursements granted to employees who had undertaken overseas travel. The Assessing Officer consequently raised a demand of tax and interest, holding that exemption under Sect

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