Income Tax Dtaa Agreement

Double taxation is the collection of taxes by two or more jurisdictions on the same income (in the case of income taxes), assets (in case of capital taxes) or financial transactions (in the case of revenue taxes). (iv) the term « income tax » for a country includes any tax on excess profits or the tax on professional profits levied on profits by the government of a part of that country or by a local authority in that country. Ask yourself if anyone can share thoughts about this dilemma I face. I am a European citizen who has lived in India for >5 years (OCI Card) and who has paid Indian taxes in India (Crores in recent years). Now that I am retired, I have no income in India for this year, other than the indian bank interest and dividends from investment funds, etc., which are paid to me after tax. All my capital gains (ST and LT) from my many investments can be adjusted for the previous year`s capital losses. My expenses/deductions at 80C, 80CCF, 80D, 80GG and the 10,000 interest this year are high enough that I calculate a repayment in India if I take a loan for taxes paid abroad under DTAA. My foreign income comes mainly from dividends and bank interest. Taxes are withheld at source abroad in about 15% to 25% on my dividends depending on the country. Now that I have not paid taxes to the Indian government this year, that my global « taxable income » is so low that my foreign taxes levied at source are already higher than the taxes owed in India on world income, I would be reimbursed by the Indian authorities for taxes that were paid essentially abroad. How will this refund be treated? 91 (1) If a person who resided in India the previous year proves that he or she paid in any country for the income he or she received or that was generated outside India in the previous year (which is not considered to be or will not be constituted in India), In the absence of an agreement under Section 90 on the exemption or circumvention of double taxation, income tax on income, by deduction or by any other means, in accordance with the legislation in force in that country, is entitled to a deduction of The Indian income tax it withdraws from an amount calculated on this income double taxed at the Indian rate or rate of tax of the country concerned , depending on the lower or Indian tax rate, if the two rates are the same.

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