1. Introduction:
Finance Act 2015,
inserted, w.e.f. 01.06.2015, clause (ha) in sub-section 2 of Section 295. It
enables the Board, subject to the control of Central Government, by a
notification in the Gazette of India, to make rules specifying the procedure
for grant of relief, deduction of any Income tax paid in any country or
specified territory outside India u/s 90, or Section 90A or Section 91, against
the income-tax payable under the Act. Accordingly, the Board has, in accordance
with the recommendation made by the Committee constituted by it, vide LETTER
[F.NO.142/24/2015-TPL], DATED 18-4-2016, announced Draft Rules for granting
relief or deduction under section 90/90A/91 of the Income-tax Act, 1961.
2. Salient features of
Draft Rule:
The salient features
of the Rules are:
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(a)
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Tax covered in the
Double Taxation Avoidance Agreement entered into by India with a country in
terms of Section 90/90A.
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(b)
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Tax, being in the
nature of Income tax referred to in clause (iv) of the Explanation to section
91, payable under the laws in force in a country, with which India does not
have Double Taxation Avoidance Agreement.
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