Dear members,
I would like to seek advice on my tax liability with respect to double taxation avoidance agreement. Firstly, I would like to provide a brief background.
During the indian financial year, I was partly in India and partly in Netherlands (in majority). I received income in respective countries and paid taxes deducted at source accordingly.
While filing ITR, I have shown global income and claimed relief on the tax paid in Netherlands.
Example,
Indian salary = 100
Tax paid in india (TDS) = 5
Netherlands salary = 200
tax paid in netherlands = 40
global income = 300 (100 + 200)
tax payable in india based on global income = 30
Relief claimed = 40 (based on taxes paid in netherlands)
Net Tax payable = 0 (30 - 40)
Tax refund claimed = 5 (tax already paid in india)
Now, according to indian IT act I am a resident in India and wanted to claim DTAA relief.
My question based on the above situation is:
1. The relief claimed as stated in example is correct way?
2. The tax residency certificate needs to be obtained from Indian Tax authorities or from Netherlands tax authorities?
Please advice, thanks in advance!
CAclubindia
