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Effect u/s 90 to 91A

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ramasubramanian srinivasan

64 Points Posted on 17 September 2024

Good morning,
Need your advise,

On our Global Income ,clients withhold a tax amount and issue certificate of deduction.

Can we, as an Indian Company claim back the WHT amount in our annual tax return or should we go by u/s 90 to 91 of IT Act and avail only 2.5% On the Turnover Only.

If we obtain a Tax Residential Certificate for our Company from the Concerned Jurisdiction officer and submit it to overseas clients for non deduction of withholding tax.is it acceptable

Replies (2)

Quick Summary

This discussion clarifies how Indian companies can claim back withholding tax deducted by overseas clients on global income. You can claim Foreign Tax Credit (FTC) under Section 90 (for DTAA countries) or Section 91 (for non-DTAA countries) by filing Form 67 with the deduction certificate before the Income Tax Return due date. A Tax Residency Certificate (TRC) can help avail Double Taxation Avoidance Agreement (DTAA) benefits in the source country and may prevent withholding tax altogether.

JG M

40 Points Posted on 17 September 2024

1. FTC credit will be available as per the FTC rules
2. u need to file tax return for claiming the foreign tax credit
3. TRC will help you to take dtaa benefit in the source country. application for TRC is now online

Aashok Kumar Sharma

Finance/Compliance Consultant

75668 Points Posted on 08 November 2026

Foreign tax credit on global income:
• If clients abroad withhold tax on your fees and issue certificates, claim FTC in India under Sec 90 (DTAA countries) or Sec 91 (non-DTAA countries), by filing Form 67 with the certificate, before the ITR due date.
• FTC is limited to the lower of the foreign tax paid and the Indian tax attributable to that income.
• Under DTAA (Sec 90), check whether the foreign country had the right to tax (e.g. FTS articles). If they withheld tax in excess of the DTAA rate, claim a refund from the foreign tax authority. India gives FTC only for the DTAA rate.