Employees with foreign income get less gross take home salary due to higher TDS as employers can’t apply FTC; Why Budget 2026 must fix this

Employees earning foreign income face higher tax deductions. This happens because employers cannot apply foreign tax credits during monthly TDS. Budget 2026 is urged to introduce a mechanism for this. Such a change would ensure accurate tax deductions, improve employee cash flow, and reduce reliance on refunds. This will benefit a growing number of professionals with cross-border earnings.