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2019 (4) TMI 95 - ITAT HYDERABADTax credit of the tax paid in USA - Foreign Tax Credit - assessee has paid federal tax, state tax and medicare-cum-disability tax in USA - HELD THAT:- Assessee is eligible to claim tax credit both federal as well as state taxes paid on the income earned during the year. Respectfully following the TATA SONS LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 2 (3) , MUMBAI [2011 (2) TMI 1528 - ITAT MUMBAI] we direct the AO to allow the credit to the extent of state taxes paid by the assessee along with the federal taxes paid. The Medicare and Disability taxes are not in the nature of income-tax, hence, this may be disallowed. Accordingly, ground raised by the assessee is allowed.
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