Dear Sir, we had provided services to one of our customers in Zambia and our bill to the tune of Now we learned that the customer said he was going to pay after tax deduction. However, we are also in favour of paying income tax for the revenues of the above service. In this case, we have to pay twice as much tax for the same income. Can you advise us to avoid such double taxation? I would like to know how to deal with the DBAA of India, India has one of the largest networks of tax treaties aimed at avoiding double taxation and preventing tax evasion. The country has entered into dual tax evasion agreements (DBAAs) with 89 countries under Section 90 of the Income Tax Act, 1961. Double taxation agreements (also known as double taxation agreements or „DBAA“) are negotiated under international law and are governed by the principles of the Hague Convention. Ask yourself if anyone can share thoughts about this dilemma I face. I am a European citizen who has lived in India for >5 years (OCI Card) and who has paid Indian taxes in India (Crores in recent years). Now that I am retired, I have no income in India for this year, other than the indian bank interest and dividends from investment funds, etc., which are paid to me after tax. All my capital gains (ST and LT) from my many investments can be adjusted for the previous year`s capital losses.
My expenses/deductions at 80C, 80CCF, 80D, 80GG and the 10,000 interest this year are high enough that I calculate a repayment in India if I take a loan for taxes paid abroad under DTAA. My foreign income comes mainly from dividends and bank interest. Taxes are withheld at source abroad in about 15% to 25% on my dividends depending on the country. Now that I have not paid taxes to the Indian government this year, that my global „taxable income“ is so low that my foreign taxes levied at source are already higher than the taxes owed in India on world income, I would be reimbursed by the Indian authorities for taxes that were paid essentially abroad. How will this refund be treated? Second, the United States authorizes a foreign tax credit that allows for the impact of income tax paid abroad on U.S. income tax debt due to foreign income that is not covered by that exclusion. The foreign tax credit is not allowed for the tax paid on activity income, which is in accordance with the rules described in the previous paragraph (i.e.: