International taxation (DTAA)

Save Share

This query is : Resolved

Quick Summary

This discussion explores whether an Indian resident can claim a tax rebate under Section 91 (DTAA) for income earned and taxed in the USA. Specifically, it questions eligibility when indexation benefits are applied to US capital gains, potentially resulting in a loss in India. The consensus is that a rebate cannot be claimed on income that results in a loss after Indian tax computations.

suhasinid1989

suhasinid1989 (Querist)
Follow

06 February 2020 Assessee has earned income from other source and capital gain in USA and paid tax at 10% on each (i.e on dividend income and CG)
Now question arise here as follow:

during the AY assessee is a resident in India and has a taxable income in India also and all the income including USA income briefed with example as follow:

1.Capital gain of USA after converting to INR and giving indexation benefit it is coming loss ( XX)
2.Income from other source including Indian income XX
Questions to be answered as follow
whether assessee is eligible for claiming rebate u/s 91 (DTAA) even though he has taken a indexation benefit while computing capital gain of USA in India?