NRI: Don’t file ITR before knowing Foreign Tax Credit and DTAA Relief!
18 June 2025Nidhi
NRI: Don’t file ITR before knowing Foreign Tax Credit and DTAA Relief!
Since the Income Tax Return filing season is here, here is all about the double taxation and foreign tax credit relief available to non-residents filing income tax returns (ITR) in India or residents who are having Income Outside India.
Double Taxation is when an Indian resident earns income, on which the person is liable to pay tax in India as well as in a foreign Country. This way, the income earned by the resident is taxed twice, which causes a loss to the income of such a person. Therefore, to avoid such taxation, a taxpayer can claim the Foreign Tax Credit on the income paid in a foreign country.