Foreign tax credit relief prevents double taxation while preserving source-country incentives and limiting credit to domestic tax attributable.

Double-taxation relief for income arising in India or Mauritius is provided through reciprocal foreign-tax credits, limited to the domestic tax attributable to the relevant foreign-source income. Qualifying corporate shareholders holding at least 10 per cent may receive credit for tax paid by the distributing company on profits underlying a dividend. Tax sparing treats specified economic-development exemptions or reductions as tax payable for credit purposes, including agreed future incentives. Exempt income may be considered when determining the tax rate applicable to remaining taxable income.

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