TAX3
Unit 7DTAA under Section 90 and 91 Q1) What are the relief granted under section 90 and Section 91 of Income Tax Act, 1961?A1) Relief under section 90 and Section 91 of Income Tax Act, 1961If a person who is resident in India in any previous year, in respect of his income, accrued or arose outside India has paid tax on such income in any country outside India, he shall be entitled deduction from the Income Tax payable by him of a sum calculated on such doubly taxed income:Under section 90 if the country in which tax is paid has entered double taxation avoidance agreement with the Government of India.Under section 91 if the country in which tax is paid has not entered into any agreement with the Government of India. Q2) How to calculate Relief under section 90/91?A2) Relief allowed under section 90/ 91 is lower of following accounts1) Tax paid on double-taxed income outside India.2) Tax payable on double-taxed income under Income Tax Act. Q3) What is the procedure for obtaining relief u/s 90 and 91A3) Procedural RequirementsFollowing documents is required to be furnished by the assessee:1. Statement of income from a country or specified territory outside India offered for the previous year and of foreign tax paid and deducted on such income in form 67 before the due date of filing of Income Tax Return.2. A statement or certificate specifying the nature of income and amount of tax deducted or paid thereof:from the tax authority of the country of specified territory outside India. from the person responsible for such deduction signed by the assessee. A signed statement by the Assessee is valid only if it is accompanied by the proof of deduction of tax or an acknowledgment of the online payment of tax.
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