Need suggestion regarding tax relief under DTAA - KamilTaylan.blog
12 June 2022 15:13

Need suggestion regarding tax relief under DTAA

How can I get relief from double taxation?

Relief from double taxation can be provided under two ways namely exemption method and tax credit method. Under the exemption method, specific income is taxed in one of the two countries and exempted in another country.

How can double taxation be avoided in India?

Section 91 of the Income Tax Act, 1961 provides for unilateral relief against double taxation. According to the provisions of this section, an individual can be relieved of being taxed twice by the government, irrespective of whether there is a DTAA between India and the foreign country in question or not.

How do I avail benefit under DTAA?

How to avail benefits under DTAA:

  1. Tax Residency Certificate (TRC) obtained from Government of home country.
  2. Self-attested copy of Passport and Visa.
  3. Indemnity-cum-declaration (in case of Banks)
  4. OCI card (if applicable)
  5. Self-attested copy of PAN Card (if available)

What are the benefits of DTAA?

Double tax avoidance agreement ensures that the honest taxpayers do not end up paying tax in two countries. It also acts as a tool to promote investment from certain countries by offering tax exemptions or lower tax rates. It is an effective way to promote cross country investments without any ambiguity.

How do I claim relief under section 90?

Computing double taxation relief under section 90:

  1. Step 1: Compute Global Income, i.e. aggregate of Indian income and Foreign income;
  2. Step 2: Compute tax on such global income under Income tax;
  3. Step 3: Compute average rate of tax (amount of tax divided by global income);

Who can avail the double taxation Avoidance Agreement DTAA benefits?

9 min read. NRIs can avoid paying double tax as per the Double Tax Avoidance Agreement (DTAA). Usually, Non-Resident Indians (NRI) live abroad, but earn income in India.

What are the relevant provisions regarding to DTAA in India?

The DTAA will provide bilateral relief to the assessee under section 90 of the Income Tax Act, 1961 and in the case where there is no DTAA with the country then the assessee can get unilateral relief under section 91 of the Income Tax Act, 1961. Now let us read section 90, 90A & 91 of the Income Tax Act, 1961.

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