https://www.taxtmi.com/caselaws?id=151844 Foreign tax credit under Article 25(2)(a) of the India-USA DTAA is limited to the amount of Indian income-tax attributable to the same income. Where the income returned in India results in a loss and no Indian tax is payable, the treaty does not permit refund or full credit of US taxes paid. The gross-basis taxation of income in the source state does not override the treaty cap, because double taxation relief operates only to the extent the same income is taxed in both countries. The document concludes that foreign tax credit cannot exceed the Indian tax liability on that income. en-us Wed, 10 Mar 2004 00:00:00 +0530 Tue, 18 Jun 2013 10:44:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151844 Foreign tax credit under Article 25(2)(a) of the India-USA DTAA is limited to the amount of Indian income-tax attributable to the same income. Where the income returned in India results in a loss and no Indian tax is payable, the treaty does not permit refund or full credit of US taxes paid. The gross-basis taxation of income in the source state does not override the treaty cap, because double taxation relief operates only to the extent the same income is taxed in both countries. The document concludes that foreign tax credit cannot exceed the Indian tax liability on that income. Case-Laws Income Tax Wed, 10 Mar 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151844