I request clarification with respect to tax relief section 90/91 for DTAA.
If I have a resident status and I have earned income in India and in the US which have been taxed separately in both the respective countries what is my tax payable/refundable in India?
Details are as follows for illustration:
Income In India : Rs 1262485 Tax Liability in India (TDS) : Rs 208829
Income Earned Overseas : USD 151275 Fed Tax : USD 25787 State Tax : USD 10891
Can I take tax benefit under either 90 or 91 whichever is more beneficial? If yes how do I represent the same in ITR 2 (Both Overseas Income & Overseas Tax)? Do I need to file any other form for taking the benefit of the relief other than the ITR 2?
31 March 2012
FIRST PL UNDERSTAMD THAT TDS IS NOT THE TAX LIABILITY. TAX LIABILITY WILL B CALCULATED AS PER SLAB RATES APPLICABLE TO U. US INCOME WILL BE CONVERTED INTO INDIAN RUPEES AND WILL BE INCLUDED IN TOTAL INCOME AFTER THAT TAX LAIB WILL BE DETERMINED THERAFTER AVERAGE TAX RATE WILL BE DETERMINED TAX ON US INXCOME AS PER AVG RATE OR TAX PAID IN USA WHICHEVER IS LOWER WILL BE THE TAX RELIEF IT IS BETTER FOR U TO CONSULT A CA IN THIS RAGARD WITH FULL DETAILS. CA MANOJ GUPTA JODHPUR 09828510543
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