Assessee is India resident receiving foreign social security income from USA. Per Article 20(2) of DTAA, this income is not taxable in India. Previously, in Schedule OS of ITR-2, we would report this income and then claim full exemption under DTAA. However, in the AY26-27 ITR-2 notified form, the DTAA exemption section in Schedule OS is shown as applicable to non-residents only. If instead we try to use FSI/Form 67 for tax credit, it allows only minimum of US Tax and India Tax which means only US tax (25%) for credit but per treaty the full India tax (30%) should be credited. How to resolve?
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