Tax Act, 1961. In case of secondments to different countries, it is a common practice for employers (globally) to ‘tax equalise’ or ‘tax protect’ their employees from differential tax liabilities arising due to the tax laws of two countries (home and host).
Hence, greater clarity on the issue of tax payment in India will help companies develop or operate global policies while seconding employees to India.
The author is senior tax professional, Ernst & Young. Views expressed are personal