TMI BlogForeign Tax Credit - Income-tax (18th Amendment) Rules, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of April, 2017. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), after rule 127, following rule shall be inserted, namely:- 128. Foreign Tax Credit .- (1) An assessee, being a resident shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, in the manner and to the extent as specified in this rule: Provided that in a case where income on which foreign tax has been paid or deducted, is offered to tax in more than one year, credit of foreign tax shall be allowed across those years in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en claimed or shall be claimed. (5) The credit of foreign tax shall be the aggregate of the amounts of credit computed separately for each source of income arising from a particular country or specified territory outside India and shall be given effect to in the following manner:- (i) the credit shall be the lower of the tax payable under the Act on such income and the foreign tax paid on such income: Provided that where the foreign tax paid exceeds the amount of tax payable in accordance with the provisions of the agreement for relief or avoidance of double taxation, such excess shall be ignored for the purposes of this clause; (ii) the credit shall be determined by conversion of the currency of payment of foreign tax at the te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of such tax; or (c) signed by the assessee: Provided that the statement furnished by the assessee in clause (c) shall be valid if it is accompanied by,- (A) an acknowledgment of online payment or bank counter foil or challan for payment of tax where the payment has been made by the assessee; (B) proof of deduction where the tax has been deducted. (9) The statement in Form No.67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income. (10) Form No.67 shall also be furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount Rate Article No. of Double Taxation Avoidance Agreements Rate of tax as per Double Taxation Avoidance Agreements Amount (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Salary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Royalty not being part of business income Fees for technical services not being part of business income Others (specify) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... daughter of , holding permanent account number _______________________ solemnly declare that to the best of my knowledge and belief, the information given in Part-A and Part-B of the statement above is correct and complete and is truly stated. I further declare that I am making this statement in my capacity as ___________ and I am also competent to make this statement and verify it. Verified today the __________day of ___________20___. Place:______________ (Signature) Note: Attach certificate or statement and proof of payment/deduction of foreign tax as referred to in clause (ii) of sub-rule (8) of rule 128. . [F.N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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