Corporate Update Central Board of Direct Taxes
CBDT has notified the draft Foreign Tax Credit Rules specifying the procedure for grant of relief or deduction of income-tax paid in any country or specified territory outside India, under section 90/ 90A/ 91 of the Act against the income-tax payable under the Act. Foreign Tax Credit Rules shall apply in a situation where tax is paid in a foreign country and the same income is subject to tax in India. In such a situation the taxpayer may be able to take credit for tax or claim a deduction for those taxes.