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Double tax avoidance agreement - USA

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Varun Rathi

Business owner

21 Points Posted on 18 July 2023

Hello,

I'm a Digital media business owner residing in India having a corporation based in India and USA. I opened the US entity to receive funds from all the clients based abroad. I would like to know if I need to disclose this in my ITR and also how does DTAA treat with US comes into play. If someone is interested in helping me on this, please connect.

Replies (1)

Mudassar Nath

Manager

51 Points Posted on 19 July 2023

91/2008 dated 28/08/2008 issued by CBDT states that any income of a resident of Indian, which “ may be taxed” in the other country ( Source Country) as per the DTAA shall be included in his total income chargeable to tax in India in accordance with the provisions of Income Tax Act, 1961.

Country	DTAA TDS rate
United States of America	15%

Yes, you have to disclose all your foreign assets, foreign operation & foreign income in your ITR. If you are paying income tax on such foreign income in USA, then you have to look into double taxation avoidance agreement to not to pay tax again on same income.

Submit US tax records for lower/no tax deduction on such foreign income:

Tax Residency Certificate (TRC) obtained from Government of home country. Self-attested copy of Passport and Visa.