Already paid taxes abroad? Now don't pay here too

WITH GLOBAL CAREERS becoming increasingly common, many Indian residents receive income from foreign countries as consultancy fees or fees for technical services.

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While this may sound rewarding, the same income may be taxed abroad as well as in India.

Prevention of double taxation

To prevent double taxation, India grants tax relief under Section 90 or Section 91.Section 90 applies when there’s a Double Taxation Avoidance Agreement (DTAA) with the other country, and the credit is allowed as per the terms of that treaty. When India has no tax treaty with the country where income is earned, Section 91 gives unilateral relief and still allows credit for the foreign tax paid.

Quantum of Foreign Tax Credit (FTC)