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FTC and refund.

Others 181 views 2 replies
Mr X has made sales to bangladesh amounting to Rs. 1Cr.

TDS done in bangladesh -20 lakhs.

Total income of Mr X at end of the year is loss of (1,00,000).

In this case, Is Mr. X is eligible to get refund of TDS deducted in Bangladesh in any way ?
Replies (2)
Tax deducted in Bangladesh can be claimed as refund as per the provisions of Bangladesh income tax and not as per indian income tax.
However Foreign Tax credit can only be claimed as credit in the year in which such income has been offered to income tax in India.
Therefore the TDS deducted in bangladesh will lapse(as mentioned there is loss in current year )..and its a loss of income to indian company right ?


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