Treaty between india-romania (Income Tax)

This query is : Resolved

nakul

( Author )
16 July 2012

Below is the case for which I need suggestion comment or get consent on double taxation treaty between ROMANIA & INDIA :

(1) We have filed Income tax return by way of taking credit of some percentage of TDS amount shown on TDS certificate we have received from ROMANIA but income tax officer has denied refund and have asked us to file revised return by saying that there is no provision to make refund from Income tax India.

We would like to know that what exact procedure we need to adopt for filing return so that adequate refund can be avail at India.

Nishad Patkar

( Expert )
18 July 2012

I think direction of ITO is correct. Article-25 of DTAA Treaty Between Romania and India clearly states that Credit of Tax Paid on the income earns in Romaina as per the Law of Romania is adjusted against the Tax paid in India as per the Income Tax Act- 1961, subject to such tax credit should not be exceeds the Tax paid in India. In other words refund can not be claimed. For more information Read Article- 25 from the link information as under

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_Romania.htm