Summary
- The Supreme Court has upheld the Delhi High Court's ruling that State Bank of India (SBI) failed to deduct TDS on Leave Travel Concession (LTC) reimbursements involving foreign travel.
- The Court clarified that exemptions under Section 10(5) of the Income-tax Act, 1961, apply only to journeys within India, rejecting SBI's arguments about domestic route calculations.
- SBI's claim of a bona fide mistake was dismissed, as the bank had access to relevant travel documents during reimbursement processing.
- This ruling reinforces employers' obligations to ensure compliance with tax deduction requirements when employees undertake foreign travel.
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