Double taxation relief: credit and deduction rules govern cross border income taxation between Italy and India under the DTAA. Article 24 provides treaty mechanisms to avoid double taxation by allowing, for Indian residents, a credit for Italian tax paid on Italy sourced income against Indian tax limited to the proportion of Indian tax attributable to that income, with a prescribed order of application where surtax is payable. For Italian residents, Italy may tax such income but must deduct Indian tax from the Italian tax computed, limited proportionally, except where a final withholding tax has been applied in Italy; taxes exempted or reduced under domestic law are treated as deemed paid, and exempt income may be considered for progression.