India Publishes Draft Rules for the Granting of Foreign Tax Credits

On 18 April 2016, India's Central Board of Direct Taxes, published draft rules for the granting of foreign tax credits. Under India's Income Tax Act (ITA), general relief for foreign taxes paid is to be provided for resident taxpayers, but no detailed rules for the determination and granting of foreign tax credits have been provided until now.

Foreign Tax Credit Availability

The draft rules include that an Indian resident taxpayer is to be allowed a credit for the amount of foreign taxes …