DTAA -India & USA

 

Hi ! 

Pls can u solve this below:

My client is a resident staying more than 182 days in india for the F.Y 2010-11. He earns salary in india for part of the year and  salary in USA for remaining months of F.Y in dollars.

Now since he is resident he needs to file the return in india.

Tax deducted at source in USA will be taken as credit in indian income tax return as per Sec 90 of IT Act. 

The tax deducted in USA are in different terms like Federal income tax, Social security(FICA),Federal medicare, California income tax,California state disability....

ISSUE 1: Now whether all the above taxes can be claimed as credit under sec 90.

ISSUE 2: OR , whether these taxes can be claimed as deduction from the salary.

ISSUE 3: Since the salary in USA and tax deducted thereon are in dollars, what is the currency exchange rate applicable to convert the same in rupees in income tax return.

Thanks in anticipation.

Harish Katigar



Replies (1)

Issue No 1 : If Indo USA treaty allows it u can take the credit.

Issue No 2 : I don't think that they can be claimed as expenses. But still if DTAA allows it claim it.

Issue No 3 : Rate of foreign exchange should be the date tax is deducted at source. But again u have to refer DTAA

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details