How to avoid double taxation

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the person who is a resident in inda had gone to USA last year. he has paid his icome tax in india and also in usa in the year 2010. he wants to avoid his double taxation..plzz provide me double taxation avoidance agreement between india and usa...and plz tell me hw to evaluate to get  relief from double taxation

thanx in advance.

Replies (11)

Go to below link.

 

https://www.allindiantaxes.com/usa%20.php

even i found tht link but there its not clear hw to calculate the relief..can u plzz guide me in tht

r nt we provided with direct provisions like in our dt..??

For this we need to go through the complete nature of transaction with foreign entity which would require thorough analysis of agreement. I would recommend you to take help of some consultant in your location.

actually this is a situation of my client..he is an employee in india later he was transfered to usa of same company he was liabled tax here n again in usa for the same year..he has paid in both the countries ..so hw can he get relief nw..??

On internet, I found the following. It may be helpful for you.

 

As per the Article 16 of DTAA ,salary is taxable in both India and USA if you have not spent more than 183 days in USA. 

However , relief for tax paid in USA is given under Artilce 25(2) of the DTAA between India & USA deals with credit for tax paid by Indian resident in USA . 

The said clause is as under
"2. (a) Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in the United States, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in the United States, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in the United States."

So whatever you EARNED in USA will have to first be included in your total income in India and tax will be computed as per I T Act . From there the TAX paid in USA shall be deducted .

The formula for computed the amount of deduction is applicable only for section 91 of the I T Act which is for countries with which India has no DTAA.

whts da exchange rate v hav to consider here?? dis computation belongs to the year 2010..soo at wht rate should i compute nw??

you should take the exchange rate as per RBI website on that date.

kk thank u and last he has got refund in USA so should i deduct the amount that is taxable  or wht else should i do..?

You should show your tax liability of USA net of refund.

thank u very much sir..i hav done my work successfully in my newly joined firm..

Advise me , how i can take the credit of the T.D.S. which has been deducted in U.S.A. in respect of remuneration as a musician teacher .

I have worked there for 4 months.


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