Income Tax > Income Tax for NRI

A DTAA is an agreement between two countries aimed at avoiding the double taxation of income. Here, we will discuss the DTAA between India and the USA and how it helps in avoiding double taxation.

To claim relief under DTAA, the taxpayer must file Form 67. This form facilitates the process of claiming relief from double taxation by providing necessary details and documentation required by tax authorities.

Tax Liability: The recipient of the gift, whether the NRI or the resident Indian, may be subject to tax on the value of the gift received. However, specific tax implications can vary based on the nature and value of the gift, as well as any applicable Double Taxation Avoidance Agreements (DTAA) between countries.

The introduction of Rule 128 and Form 67 has significantly clarified the process of claiming Foreign Tax Credit (FTC) in India. Effective from April 1, 2017, Rule 128 of the Income Tax Rules governs the eligibility and conditions for claiming FTC.