The era of globalization and digitalization has brought a
revolution in the way businesses are conducted, bringing the
economies/geographies closer. While the businesses are evolving,
the tax challenges relating to the right to tax the income between
the Source and Residence Country are equally evolving.
Tax Treaties play a very crucial role to ensure that the taxes
on income are distributed between the sovereigns while eliminating/
minimizing double taxation in the hands of the person earning the
income. In this article, we are giving an overview of the
regulations relating to the claim of Foreign Tax Credit (FTC) in
India and the related tax issues.
Foreign Tax Credit
FTC is allowed to be a resident of India in respect of the tax
paid by him in a source country or specified territory outside
India either by deduction or otherwise.
