30 January 2008
If a resident and ordinarily resident person earns some income in foreign currency, what is the rate of exchange at which it shiuld be taken as income for tax purpose? Will the same rate apply for relief for the taxes paid outside India?
31 January 2008
when received actul income from foreign this is your icome when it is credited in your a/c if tax is deducted from foreign incoe you will get dtaa get deductin from your income u/s 90 and 91 of the act
02 February 2008
See Rule 115 for conversion of income into INR. For tax, you have to compare 1.average rate of tax i.e Tax as per IT Act (inclg SC and EC)/ Total Income as per IT Act (See S.2 for def of avg rate of tax) and 2. rate of tax i such foreign country on the doubly taxed income. The lesser of the two rates is applied on the doubly taxed income to get relief u/s 91 (unilateral relief i.e where there is no DTAA with another country) S. 90-In case there is a DTAA with another country, relief will be as per the DTAA.
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