international taxation

[MANOHAR KALBURGI]

Dear sir/madam

Assessee has earned income from other source and capital gain in USA and paid tax at 10% on each (i.e on dividend income and CG) Now question arise here as follow:

during the AY assessee is a resident in India and has a taxable income in India also and all the income including USA income briefed with example as follow:

1.Capital gain of USA after converting to INR and giving indexation benefit it is coming loss ( XX)

2.Income from other source including Indian income XX

Questions to be answered as follow

whether assessee is eligible for claiming rebate u/s 91 (DTAA) even though he has taken a indexation benefit while computing capital gain of USA in India?

Thank you in advance

AI Summary

Rebate under section 91: whether indexed foreign capital loss bars claiming domestic relief for foreign taxes. An Indian resident received US dividend income and US capital gain taxed abroad, included both in Indian taxable income; after currency conversion and indexation the US capital gain became a loss. The issue is whether relief under section 91 is available when indexation is applied in India and the indexed computation yields a loss, considering the foreign tax paid.