Elimination of double taxation: credit and exemption mechanisms determine tax relief between residents of India and Luxembourg.

The treaty prescribes reciprocal relief: India grants a tax credit for Luxembourg tax paid, limited to the tax attributable to income or capital taxable in Luxembourg, and may apply exemption with progression. Luxembourg generally exempts income or capital taxable in India but may compute tax on remaining income as if the exempt amounts were included; for specified income categories Luxembourg grants a tax credit for Indian tax paid, limited to the tax attributable to that income, with exclusions where India grants treaty exemptions.

---

---

---