Its urgent And Valuable for Myself

if india has a DTAA with nepal the following are the consequences:

1.....income will be taxed only in one country

2...if income is taxed in both the countries,tax paid in one country will be allowed as deduction from tax payable in the other country as per the agreement between the two countries.(india and nepal)

BUT SIR IN NEPAL, TDS IS DEDUCTED AT LOW RATE AS VALUE OF MONEY IS ALSO LESS AND IN INDIA ASSESSE COMES IN 30 % SLAB RATE OF TAX. SO HOW WOULD I ABLE ACCOUNT FOR THIS TRANSCTION.

rebate u/s 90A will be calculated in the foll manner:total tax liability in india(including tax on income received from nepal)-relief u/s 90A(tax paid in nepal).......this will be followed if DTAA  between india and nepal provides that indian tax liability will be deducted to the extent of tax paid by the assessee on income received from nepal.......

as far as accounting is concerned, first pass the foll entry when u receive income from nepal

bank dr

relief u/s 90A dr

to income received ac

thereafter  at the time of finalisation u can  calculate the final tax liability in india and  pass the foll entry:

1.income tax  dr

      to bank

       to relief u/s 90A