Get In Touch
Foreign tax credit – Part 2

Blogs

Foreign tax credit – Part 2

Foreign tax credit – Part 2

Unilateral tax credit –

Section 91 of Income Tax Act, 1961 (‘Act’) enables its residents to avail unilateral tax credit for foreign taxes paid outside India in a country with which India has not signed any tax treaty. Following conditions are required to be satisfied by the for availing unilateral tax credit –

  • Person claiming credit must be resident in India for the said previous year
  • Income is from a source outside India. In other words, income shall not be deemed to accrue or arise in India
  • Tax has been paid in the foreign country << The taxpayer should be able to prove that he/ she has paid income tax on such income in the foreign country>>
  • Absence of agreement under section 90 for the relief or avoidance of double taxation.

Read more

Leave a comment

Your email address will not be published. Required fields are marked *

The views in all sections are personal views of the author.

Feedback
Feedback
How would you rate your experience?
Do you have any additional comment?
Next
Enter your email if you'd like us to contact you regarding with your feedback.
Back
Submit
Thank you for submitting your feedback!