Double Taxation

This query is : Resolved

Maheen (Querist)
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16 November 2008 My client is employed with TCS in US. They have been paying his salary and deducting tds in USD. My client has filed his W-2 (ITR in US). He left TCS in Aug 07 and TCS gave him a salary certificate in INR.

My client files his ITR regularly in India. How and to what extent do i claim the double taxation benefit in his ITR? Do i have to apply any conversion rate to convert the tds paid in USD to INR? Is there a formula for claiming this benefit and under what section? How will his total income in INR be computed in such a case?

Ravikumar.G

Ravikumar.G (Expert)
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18 November 2008 The Taxation of income when agreement with a foreign country exists. Sec (90).
Bilateral relief (two methods of granting relief under DTAA)
a) Exemption method
b) Tax credit method

Ravikumar.G

Ravikumar.G (Expert)
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18 November 2008 Computation of Bilateral relief :
I. Compute total income liable to tax in India in accordance with the provisions of the IT act.

II. Compute relief as the terms of the tax Treaty entered with the other contracting country where the income has suffered double taxation.

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