DTAA Income

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2 Points Joined July 2021

whether we can the show dividend income in DTAA in other sources received from US on which TAX is deducted in US and

if cant show what is the reason to not show in DTAA

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On 30 May 2025 at 16:17 Report
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Master in Accounts & high court Advocate
9442 Points Joined December 2011

Dividend Income in DTAA -

*Double Taxation Avoidance Agreement (DTAA)*: India has a DTAA with the US to avoid double taxation on income. - 

*Dividend Income*: Dividend income received from the US would be subject to tax in India, but credit would be given for taxes withheld in the US. Showing Dividend Income in DTAA - 

*Reporting Dividend Income*: You would report the dividend income in your Indian tax return, claiming credit for taxes withheld in the US. - 

*Foreign Tax Credit (FTC)*: You can claim FTC in India for taxes withheld in the US on dividend income. Reason for Claiming FTC -

 *Avoid Double Taxation*: The purpose of DTAA is to avoid double taxation on the same income. -

*Tax Credit*: By claiming FTC, you ensure that you're not taxed twice on the same income. Documentation Required -

 *Certificate of Tax Withheld*: Obtain a certificate of tax withheld from the US authorities. -

 *Tax Return*: Report the dividend income and claim FTC in your Indian tax return. Consult a tax professional to ensure compliance with tax laws and DTAA provisions .

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On 30 May 2025 at 17:42


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