A professor earned ₹8,00,000 from a foreign country where no DTAA exists with that country and tax deducted at source is ₹60,000. The assessee is an Indian citizen and resides in India. His other income in India are ₹2,6

CS Executive · Tax Laws and Practice · PYQS · December 2014
A professor earned ₹8,00,000 from a foreign country where no DTAA exists with that country and tax deducted at source is ₹60,000. The assessee is an Indian citizen and resides in India. His other income in India are ₹2,67,000. Tax relief u/s 91 will be —
(A) ₹60,000
(B) ₹80,000
(C) ₹1,20,000
(D) Nil.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) ₹60,000. Foreign tax rate = 60,000/8,00,000 = 7.5%, below the Indian average rate. Relief on doubly taxed income is the foreign tax of 60,000. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: International Taxation

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