Clause 160 - Countries with which no agreement exists.

Double taxation relief reduces Indian tax payable where foreign tax is paid in a non treaty country on the same income.

Provision entitles an Indian resident who proves foreign tax paid in a country with no relief agreement to a deduction from Indian income tax on doubly taxed foreign income, calculated at the lower of the Indian rate of tax or the foreign country's rate; a parallel rule applies to non residents assessed on a share of a registered firm's foreign income. Definitions specify 'income tax' to include excess profits taxes, 'Indian income tax' as tax under this Act, and formul for the Indian rate of tax and the rate of tax of the said country.