Indian IT Portal issue in computing tax as per UK-India DTAA

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This discussion addresses an issue with the Indian IT portal incorrectly calculating zero tax for income chargeable under the UK-India Double Taxation Avoidance Agreement (DTAA). The user is seeking clarification on how to manually compute and report tax on dividends and interest according to DTAA rates, specifically whether to apply progressive tax slabs or the capped DTAA rates. Guidance suggests manually calculating tax using the specific DTAA rates (e.g., 10% on dividends, 15% on interest) and then entering the consolidated amount into Schedule SI, Row 40, while also accounting for the 4% cess.

Sitesh

Sitesh (Querist)
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21 July 2026 Hi,
I want to specifically file the Indian income tax return under UK-India DTAA. Unfortunately the Indian income tax portal is computing the tax as zero on income chargeable under DTAA. Form 10F was submitted earlier with TRC attached.
1) Are we supposed to be computing the tax and manually update in Schedule SI, Row 40 (Other source income chargeable under DTAA rates) ?
2) If we have to manually update, what is the correct process of computing the tax under UK-India DTAA? Say Dividend is 3 lakhs and Interest is 14 lakhs. Do we compute tax as (10% of Div 3 lakhs and 15% on Int 14 lakhs ?) OR use progressive slabs on total income of 17 lakhs with a cap on maximum tax rate 15% (till 4 lakhs zero, 5% on 4-8 lakhs, 10% on 8-12 lakhs, 15% on 12-16 lakhs, 15% capped on 20% tax rate (16-17 lakhs))
3) As per UK-India DTAA treaty, the tax on interest is 15%. Is cess of 4% payable on the 15% tax on interest?

Aashok Kumar Sharma online

Aashok Kumar Sharma

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21 July 2026 To resolve the portal's zero-tax computation under the UK-India DTAA, ensure that Schedule FSI and Schedule TR are completely filled out, compute the tax manually using the specific beneficial DTAA rates (e.g., 10% on dividends and 15% on interest) rather than progressive slabs, and enter the consolidated figure into Schedule SI, Row 40 along with the appropriate cess considerations.

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Sitesh

Sitesh (Querist)
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21 July 2026 Thank you Aashok Ji
Noted your guidance on manual computation (10% on dividend and 15% on interest) and updating Schedule SI row 40 and that 4% cess over and above the DTAA rates is applicable.

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