Introduction
We are pleased to present the latest edition of
- The '
Focus Point ' covers an overview of the regulations relating to theFTC claim inIndia and the related key tax issues. - Under the 'From the Judiciary' section, we provide in brief, the key rulings on important cases, and our take on the same.
-
Our 'Tax Talk' provides key updates on the important tax-related news from
India and across the globe. - Under 'Compliance Calendar', we list down the important due dates with regard to direct tax, transfer pricing and indirect tax in the month.
We hope you find our newsletter useful and we look forward to your feedback.
You can write to us at taxstreet@nexdigm.com. We would be happy to hear your thoughts on what more can we include in our newsletter and incorporate your feedback in our future editions.
Warm regards,
The Nexdigm Team
Foreign Tax Credit - Overview and related issues
Foreign Tax Credit (FTC) is allowed to a resident of
FTC is allowed in respect of tax paid outsideIndia irrespective of whetherIndia has entered into a Double Taxation Avoidance Agreement (DTAA) with such country or specified territories or not.FTC is allowed in the year in which the corresponding income is offered to tax inIndia .FTC is restricted to the amount of tax payable inIndia on the corresponding income.FTC can be claimed only against the tax, surcharge and cess payable on the corresponding income inIndia .-
For claiming the
FTC , the taxpayer is required to file the prescribed form online - Form 67 by the end of the relevant assessment year in which the corresponding income is offered to tax -
Over the years, there have been various issues relating to the eligibility to claim
FTC , the amount that can be claimed as a credit, relating to filing of Form 67, which we have covered in the ensuing paragraphs.
Relief against State Taxes
In certain countries (for example, the
In the case of
Hence, the taxpayer is, in principle, entitled to tax credits in respect of the State as well as Central tax payable outside
Allowability of
Where an income is subject to profit-linked deduction and no tax is payable on the same in
In this context, the decision of the
It will be interesting to see how the Apex Court interprets India-
Footnotes
1. [2015] 62 taxmann.com 26, [2016] 382 ITR 179
2. [2011] 10 taxmann.com 87 (Mum.)
3. [2018] 95 taxmann.com 107 (SC)
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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