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K.Ridhkaran (Querist)

25 January 2015 A person ordinary resident gets salary from abroad on which TDS has been deducted in abroad, can that be claimed as deduction from tax ???

CA Anjana Grover

CA Anjana Grover (Expert)

25 January 2015
Under Section 90 and 91 of the Income Tax Act, relief against double taxation is provided in two ways:

Unilateral Relief

Under Section 91, the Indian government can relieve an individual from double taxation irrespective of whether there is a DTAA between India and the other country concerned. Unilateral relief may be offered to a tax payer if:

The person or company has been a resident of India in the previous year.
The same income must be accrued to and received by the tax payer outside India in the previous year.
The income should have been taxed in India and in another country with which there is no tax treaty.
The person or company has paid tax under the laws of the foreign country in question.

Bilateral Relief

Under Section 90, the Indian government offers protection against double taxation by entering into a DTAA with another country, based on mutually acceptable terms. Such relief may be offered under two methods:

Exemption method – This ensures complete avoidance of tax overlapping.
Tax credit method – This provides relief by giving the tax payer a deduction from the tax payable in India.

So you can get the relief as provided in above sections as applicable to you.

Regards

CA MAYANK WADHERA

CA MAYANK WADHERA (Expert)

26 January 2015 The provisions mentioned by Anjana ji are relevant for your case and your tax will be calculated at the average tax rate applicable on the Gross total income in India and from abroad.
let us suppose your income is X from abroad and Y from India and TDS deducted in abroad is @ 20%, firstly the tax applicable on your Gross Total income(X+Y) considering the Indian taxation slabs applicable to an Individual will be calculated and then Average tax rate (X+Y)/GTI will be calculated and if this average tax is less than 20% then you will be taxed at this average tax rate and if it is more than 20% then you can avail benefit by paying tax @ 20% only.

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