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Difference Between tax credit and tax relief?
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Tax credit is obtained when India has a DTAA(Double Taxation Avoidance avoidance agreement) with other countries whereas tax relief is obtained when India does not have A DTAA with the other country. Manner of computation of both is different
Tax relief is any program or incentive that reduces the amount of tax owed by an individual or business entity. Examples of tax relief include the allowable deduction for pension contributions, and temporary incentives such as tax credits for the purchase of new high-efficiency heating and cooling equipment.
A tax credit is an amount of money that taxpayers can subtract from taxes owed to their government. The value of a tax credit depends on the nature of the credit; certain types of tax credits are granted to individuals or businesses in specific locations, classifications or industries.
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