Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 18^th April, 2016

Subject: Draft rules for grant of Foreign Tax Credit –reg.

The Income-tax Act, 1961 (the Act) provides that the Central Board of Direct Taxes may prescribe rules specifying the procedure for grant of relief or deduction of income-tax paid in any country or specified territory outside India, under section 90/ 90A/ 91 of the Act against the income-tax payable under the Act.

The draft rules for grant of Foreign Tax Credit are uploaded on the website of the Department at www.incometaxindia.gov.in for comments from stakeholders and general public.

The comments and suggestions on the draft rules may be sent by 02.05.2016 at the email address [email protected] or by post at Director (TPL-IV), Central Board of Direct Taxes, Room No. 147-F, North Block, New Delhi.

(Meenakshi J Goswami)

Commissioner of Income Tax

(Media and Technical Policy)

Official Spokesperson, CBDT.

Foreign tax credit procedure proposed; draft rules open for stakeholder comments and public consultation. The Central Board of Direct Taxes has proposed draft rules to prescribe the procedure for grant of Foreign Tax Credit under the Income tax Act's mechanisms for relief against tax paid outside India. The draft establishes the procedural framework and documentation requirements by which tax paid in a foreign country or specified territory may be credited or deducted against Indian income tax, and has been published for stakeholder comments and public consultation to inform final rulemaking.