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Tax credit u/s 90

Tax queries 391 views 1 replies

CA Sagar Mohandas

Practising

39 Points Joined November 2008

Mr. A was a resident in India and stayed in India for 8 months in the current Financial Year and then went to USA for job there. He has earned Salary and the following Taxes were deducted from his salary

1. Federal Tax

2. Social Securities Tax

3. Medicare Tax

4. State Tax

From the above, what are the taxes we can claim as credit u/s 90?

Thanks.

Replies (1)

Raphael

Chartered Accountant

214 Points Joined January 2009

Dear Sir,

I believe the federal tax as well as state tax can be claimed as relief u/s 90. But as per DTAA article 16 , salaries recieved can be taxed only in the country in which employment was excercised. Hence this is an exemption and therfore the relief route need not be applied in this case.