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DTAA Provisions - Dividend Income From USA

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Mohnish Sivanandham

1 Points Posted on 02 August 2022

I have received dividend from US company and tax has been deducted at rate of 25 percentage in US.
Now in India I can claim that TDS amount as releif..
My doubt is at what rate the dividend is taxable in India whether it is at 25 percentage or at slab rate (I fall in higher slab rate ) .DTAA provisions says that I can take rate which is beneficial ...so Can I take 25 percentage rate and compute my tax in India?

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Quick Summary

This discussion clarifies how dividend income from a US company is taxed in India, especially when US tax (TDS) has already been deducted. It explores the application of Double Taxation Avoidance Agreement (DTAA) provisions, specifically whether the Indian tax rate on such dividends should be the US TDS rate (25%) or the individual's applicable slab rate. The consensus suggests that the beneficial rate, as per DTAA, can be applied.