Examine and state the correctness or otherwise of each of the following statements in the context of provisions contained under the Income-tax Act, 1961 by giving brief reasons/contents : (iii) Ramesh, resident in India
CS Professional · Direct Tax Law & Practice · PYQS · December 2019
Examine and state the correctness or otherwise of each of the following statements in the context of provisions contained under the Income-tax Act, 1961 by giving brief reasons/contents : (iii) Ramesh, resident in India during the previous year 2018-19 had agricultural income of ₹ 15 lacs from the lands located in Malaysia. He had paid tax on such agricultural income in Malaysia, for which he is entitled to claim a rebate/relief from the tax payable in India.
Answer & Explanation:
Correct Rebate /Relief of taxes of foreign taxes will depend on the fact whether India has a DTAA with Malaysia or not. If India has a DTAA with Malaysia, Rebate/Relief will be allowed u/s 90 However if there is no DTAA with Malaysia, he is entitled to relief as per section 91 of the Income Tax Act, 1961, from the tax payable by him to the following extent: Amount of tax paid in Malaysia on such income liable to tax in India, or Of a sum calculated on that income at the Indian rate of tax; whichever is less
Topics: International Taxation
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