Double Taxation Relief & Foreign Tax Credit Under Income Tax Act 2025

Shree | Last updated: 29 August 2026

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This article explains how Indian residents can avoid paying tax twice on foreign income. It details two main relief mechanisms: bilateral relief through Double Taxation Avoidance Agreements (DTAAs) and unilateral relief when no DTAA exists. The content covers the application of DTAA provisions, the process of claiming Foreign Tax Credit (FTC), and the documentation required for both scenarios.

When an individual earns income from a foreign country, one important tax question arises: Will the same income be taxed twice? For a person who is resident in India, foreign-source income may be taxable in India while the same income may already have been taxed in the country where it was earned. Without any mechanism for relief, the taxpayer could end up paying tax twice on the same income. This is where Double Taxation Relief and Foreign Tax Credit (FTC) come into play. India provides reli

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About the Author

Shree

Finance Professional

I write practical, research-driven articles on finance, insurance, taxation, business compliance, investing, labour laws, and digital platforms. My goal is to simplify complex topics into clear, actionable insights that help readers make informed financial and business decisions.

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