Royalty from foreign company

This query is : Resolved

Guest

Guest (Querist)

20 May 2015 I receive royalty from a foreign company who transfer proceeds to my bank account after deduction of tax as per the foreign tax rules. How should I treat it as per Indian tax laws. What to do while filing return . Can I claim refund of the tax deducted abroad

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 May 2015 You can't claim refund of tax deducted but this amount can be reduced from the tax payable in India while filing the return.

Guest

Guest (Querist)

21 May 2015 I only have salary income & royalty received from foreign company. Which ITR should I file in which such tax on royalty paid abroad can be reduced. Do I require to ask for any proof/certificate from foreign company of such tax deducted abroad.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2015 File ITR 2. Proof for deduction is required.

See the link.
https://cleartax.in/ITR2

MEHUL SHAH

MEHUL SHAH (Expert)
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13 June 2015 You can claim Tax Credit under Article 23/24 if the country from whom you are receiving Royalty is having a Double Treaty Avoidance Agreement with India.

Download the DTAA from the Income Tax Website

If the country does not have a treaty, still you can claim credit at an average rate of tax as per Section 90/91 of the Income Tax Act, 1961.

After filling the return, if you wish you can send it to me at mehul@raseshca.com
for review.

Regards,
CA Mehul Shah
9723459572