Refund of tax paid u/s90

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sweet chandana (Querist)
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03 July 2013 Sir,
Can any one please tel me how to claim refund for NRI assessee who paid tax in Canada for global income and tds deducted in India. Canada country did not give deduction for tax paid in India.
Where can the assessee claim for the refund..?
Please reply at your early.....

Regards...,
Chandana.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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04 July 2013 UR QUERY IS SHORT OF DETAILS. HOWEVER IF INCOME IS DOUBLY TAXED IN INDIA AS WELL AS CANADA THEN U CAN GET RELIEF U/S 90.
CA MANOJ GUPTA
JODHPUR
09828510543

sweet chandana

sweet chandana (Querist)
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04 July 2013 sir.,
The assessee is non resident in India and resident in Canada.In Canada Global income is taxed.No deduction is given in Canada for TDS deducted in India.Where can he claim the refund for the tax paid in India.Please reply

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Hey! Here’s a clear explanation for your query on refund of tax paid under Section 90 for an NRI assessed in India and Canada:

Scenario:
NRI is resident in Canada and non-resident in India.
Global income is taxed in Canada (no relief for Indian TDS in Canada).
TDS has been deducted in India on some income.
Canada does not give credit for Indian TDS.
You want to know where/how to claim refund of tax paid in India.
Important Points:
Section 90 & DTAA Relief:
Section 90 of the Income Tax Act allows relief where India has a Double Taxation Avoidance Agreement (DTAA) with another country (Canada here). Under this, India and Canada should avoid taxing the same income twice.
Tax Credit & Refund in India:
If India has deducted tax (TDS) on income that is also taxed in Canada (where Canada doesn’t provide credit), India will not refund tax just because Canada did not give credit.
India will not refund TDS automatically, because India considers tax liability on income earned in India or taxable here.
However, if excess TDS was deducted in India, or if your overall Indian tax liability is less than the TDS, you can claim a refund of excess TDS by filing an income tax return in India.
How to claim refund in India:
File your Indian Income Tax Return (ITR) for the relevant financial year.
Show total income and TDS deducted.
If TDS is more than tax liability in India (after considering DTAA relief), you can claim refund.
Attach Form 67 if claiming credit for foreign tax paid (though in this case, Canada doesn't provide credit, so focus on Indian tax).
No refund from Canada:
Since Canada doesn’t allow credit for tax paid in India, refund cannot be claimed from Canada.
Additional Step - Relief under DTAA:
If there is income taxable in both countries, you can try to reduce Indian tax liability by showing that tax has been paid in Canada (subject to DTAA provisions).
But for refund of TDS, file the Indian return and claim refund if excess tax is paid.
Summary:
Refund of tax paid in India is claimed by filing Indian Income Tax Return.
India will refund excess tax/TDS after assessment.
There is no separate “refund application” other than filing ITR.
Canada does not refund or adjust tax paid in India.

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