Double taxation relief by reciprocal tax-credit deductions limits relief to tax attributable to the income taxed abroad.

Elimination of double taxation is achieved by reciprocal tax-credit deductions: India allows a deduction for income tax paid in Macedonia limited to the portion of Indian tax attributable to income taxable in Macedonia, and may consider income exempt under the Agreement when computing tax on remaining income. Similarly, Macedonia allows a deduction for income tax paid in India limited to the portion of Macedonian tax attributable to income taxable in India, and may take exempted income into account for computing tax on the resident's other income.

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