Double taxation relief query (sec 90)

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This query is : Resolved

Arvind K (Querist)

07 July 2012 Dear Experts,

A Resident consultant receives the following fees from UK:

Prof fee 1200$
less: Taxes 100$
less: National Insurance 100$
Therefore, Monthly fees received is 1000$.

My query is while calculating relief u/s 90 whether mandatory 'national insurance' deducted also be claimed as taxes borne abroad?

Further if the taxes to be paid in India on such is less than the taxes borne abroad, can the Assessee claim refund?

Please provide your valuable advices. Thanks...

CA Rahul Gupta

CA Rahul Gupta (Expert)

07 July 2012 National Insurance is only contribution paid by employees for the Future benefits.it can not be claimed as taxes borne abroad while calculating relief u/s90.No, you can not claim refund

Arvind K

Arvind K (Querist)

07 July 2012 Thanks alot for the advise.

Finally after calculating tax on total income (i.e., 1200$ x 12 months less professional expenses), the credit of taxes alone can be taken as credit, subject to max of Indian tax payable.

Is my understanding right?

CA Rahul Gupta

CA Rahul Gupta (Expert)

07 July 2012 Yes, You are correct for the above.

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