DTAA Foreign Tax Relief Calculator
Compute your relief on foreign income under a Double Taxation Avoidance Agreement — credit vs exemption method, and the net tax India can still charge, live on one screen.
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- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Relief computation
Credit methodClaim your DTAA relief correctly with a CA
We file Form 67, apply the right treaty article and make sure you don't pay tax twice.
Disclaimer: Indicative estimate. Actual DTAA relief depends on the specific treaty article, your residential status, the nature of income and Form 67 filed on time. Convert foreign tax at the prescribed telegraphic-transfer buying rate.
DTAA relief under Section 90
If you are a resident of India but earn income that is also taxed in another country, a Double Taxation Avoidance Agreement (DTAA) stops the same income being taxed twice. Relief is claimed under Section 90 where India has a treaty with that country, or under Section 91 (unilateral relief) where no treaty exists. Most Indian treaties use the credit method.
Credit method vs exemption method
The two mechanisms give relief differently. Under the credit method India taxes the income and then reduces your Indian tax by the foreign tax already paid (limited to the Indian tax on that income). Under the exemption method the foreign income is simply left out of Indian tax, though it may still be counted to fix the rate on your remaining income.
| Foreign income taxed in India? | Yes |
| Relief given as | Tax credit |
| Credit limited to | Lower of the two |
| Net India tax | Indian tax − credit |
| Form 67 required | Yes |
| Foreign income taxed in India? | No (exempt) |
| Relief given as | Full exemption |
| Effect on other income | May set the rate |
| Net India tax on it | Nil |
| Form 67 required | Yes, if credit claimed |
Worked example
A resident earns ₹10,00,000 abroad, pays ₹1,50,000 tax there, and would pay Indian tax at 30% on that income. Here is how relief plays out under each method — enter your own figures above to recompute live.
Key terms explained
Foreign Tax Credit (FTC)
A credit for tax paid in the source country, set off against your Indian tax on the same income under Rule 128. It is limited to the lower of the foreign tax and the Indian tax attributable to that income.
Form 67
Mandatory to claim FTC — an online statement of foreign income and tax, filed on the income-tax portal on or before the due date of your return (and before filing the ITR itself).
Tax Residency Certificate (TRC)
A certificate from your country of residence proving you are eligible for treaty benefits. Without a valid TRC (plus Form 10F where required) a DTAA benefit can be denied.
Credit vs exemption
The credit method taxes the income and offsets foreign tax; the exemption method leaves the income out of Indian tax entirely. The applicable method is set by the specific treaty article for that income type.
Questions people ask
Short answers on DTAA Foreign Tax Relief. Tap a question to open it.
01What is DTAA relief?
Where the same income is taxed both in a foreign country and in India, a Double Taxation Avoidance Agreement lets you claim relief in India for the tax already paid abroad, so that you are not taxed twice on the same income.
02How is the relief computed?
Under the credit method, relief is the lower of the foreign tax actually paid and the Indian tax attributable to that doubly-taxed income. Where there is no treaty, section 91 gives unilateral relief at the lower of the Indian rate and the foreign rate.
03What documents are needed to claim foreign tax credit?
Form 67 filed on the e-filing portal, a certificate or statement of income and tax from the foreign tax authority or the payer, and proof of payment. Form 67 must be filed on or before the end of the assessment year.
04Do I need a Tax Residency Certificate?
A TRC from the other country is required to claim treaty benefits in India, along with Form 10F where the TRC does not carry all prescribed particulars. Non-residents claiming a treaty rate on Indian income need both.
05Is relief available for foreign social security or surcharge?
Only for taxes covered by the treaty. Social security contributions are usually outside its scope. Foreign surcharge and cess on income tax are generally creditable if they form part of the covered income tax.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.