Article 24 - Methods of elimination of double taxation

Double taxation relief: foreign tax credit permits Indian tax to offset Australian tax on the same income.

The Agreement implements a foreign tax credit regime: Indian tax paid on India-source income is creditable against Australian tax for Australian residents, including in certain dividend situations where the shareholder holds a minimum interest; specified Indian tax exemptions may be treated as tax forgone for credit purposes subject to defined categories and agreement; for Indian residents, Australian tax on Australian-source income is creditable against Indian tax limited to the proportionate Indian tax attributable to that income, with surtax credit applied after income tax.