Refund of Tax Credit under DTAA
This query is : Open
29 July 2009
Hello,
Please reply it soon, its very very urgent.
I have salary income from finland for the year 2007-08. After considering the income in india. I have tax liability, now considering the tax paid in finland i have refund of taxes. My query is can i claim excess amount as refund in my income tax return.
Eg.: Total taxable income 10L.
tax for f.y. 2007-08 256470.00
total tax paid (including tds in india & tax paid in finland) Rs. 292000.00
Can i claim Rs. 35530.00 as refund of income tax in my return of income.
Please reply it soon, its very very urgent.
I have salary income from finland for the year 2007-08. After considering the income in india. I have tax liability, now considering the tax paid in finland i have refund of taxes. My query is can i claim excess amount as refund in my income tax return.
Eg.: Total taxable income 10L.
tax for f.y. 2007-08 256470.00
total tax paid (including tds in india & tax paid in finland) Rs. 292000.00
Can i claim Rs. 35530.00 as refund of income tax in my return of income.
29 July 2009
Hello Mr. Chetan,
You can definitely claim refund of Rs. 35,530/- in your return as the principle of Double Taxation relief is to benefit the assessee and to assisst the department to collect taxes. As you have already paid the required amount tax thus you can claim the excess tax deducted.
You can definitely claim refund of Rs. 35,530/- in your return as the principle of Double Taxation relief is to benefit the assessee and to assisst the department to collect taxes. As you have already paid the required amount tax thus you can claim the excess tax deducted.
29 July 2009
Please read the para 3(a) mentioned below & explain me the interpretation
"(3) In India double taxation shall be eliminated as follows:
(a) The amount of Finnish tax payable, under the laws of Finland and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of India, in respect of income which has been subjected to tax both in India and Finland shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exceeding that proportion of Indian tax which such income bears to the entire income chargeable to Indian tax.
(b) For the purposes of the credit referred to in sub-paragraph (a) above, where the resident of India is a company by which surtax is payable, the credit to be allowed against the Indian tax shall be allowed in the first instance against the income-tax payable by the company in India and, as to the balance, if any, against the surtax payable by it in India :
Provided that income which in accordance with the provisions of this convention is not to be subjected to tax may be taken into account in calculating the rate of tax to be imposed."
This is from DTAA with finland.
"(3) In India double taxation shall be eliminated as follows:
(a) The amount of Finnish tax payable, under the laws of Finland and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of India, in respect of income which has been subjected to tax both in India and Finland shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exceeding that proportion of Indian tax which such income bears to the entire income chargeable to Indian tax.
(b) For the purposes of the credit referred to in sub-paragraph (a) above, where the resident of India is a company by which surtax is payable, the credit to be allowed against the Indian tax shall be allowed in the first instance against the income-tax payable by the company in India and, as to the balance, if any, against the surtax payable by it in India :
Provided that income which in accordance with the provisions of this convention is not to be subjected to tax may be taken into account in calculating the rate of tax to be imposed."
This is from DTAA with finland.
29 July 2009
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