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Tax credit u/s 90

CA Sagar Mohandas (Practising ) (39 Points)

29 January 2015

Mr. A was a resident in India and stayed in India for 8 months in the current Financial Year and then went to USA for job there. He has earned Salary and the following Taxes were deducted from his salary

1. Federal Tax

2. Social Securities Tax

3. Medicare Tax

4. State Tax

From the above, what are the taxes we can claim as credit u/s 90?

Thanks.

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1 Replies

Raphael (Chartered Accountant) (214 Points)
Replied 02 February 2015

Dear Sir,

I believe the federal tax as well as state tax can be claimed as relief u/s 90. But as per DTAA article 16 , salaries recieved can be taxed only in the country in which employment was excercised. Hence this is an exemption and therfore the relief route need not be applied in this case.