Dtaa

Tax queries 566 views 2 replies

hi,


Is the Income received from Foreign Company situated in USA on which tax is deducted @ 25% under DTAA taxable in India?For eg: If $100 is the income on which tax deducted in USA is $25, will the bal $75 coverted in Indian currency say @ Rs45 be taxable ie Rs 3375 be taxable in India?? what about the Tax creit ie paid in USA??

Replies (2)

For dat u need to verify d relevant article of DTAA  signed bet India and USA.

Dear arti

TDS deducted outside India shall be treated as income in India.

Therefore income in India shall be $ 100.

The tax paid in USA $ 25.

Relief allowed is u/s 90 as per Indo -- US treaty

Tax exemption method.

$ 100 shall be exempt in India as per DTAA. Therefore only income earned in India is only taxable.

Tax credit method

Both Indian income and income earned in USA is taxable in India. Compute tax on global income. $ 25 shall be deducted from tax paid in India.

If u can write what is the specific income then i can elaborate further.

thanks

https://taxbykk.blogspot.com/

 


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