https://www.taxtmi.com/caselaws?id=374192 Under the India-Thailand DTAA, tax sparing credit is available where Thai tax is deemed payable on dividend income even though the income was exempted in Thailand under an investment promotion regime. Article 23(3) treats the foregone Thai tax as payable for credit purposes, while Article 23(2) allows the credit against Indian tax subject to the treaty ceiling. Because the dividend was taxable in India and the treaty provided the more beneficial relief, section 90(2) permitted the assessee to claim the foreign tax credit, and the disallowance was unsustainable. en-us Thu, 24 Jan 2019 00:00:00 +0530 Mon, 28 Jan 2019 08:02:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=374192 Under the India-Thailand DTAA, tax sparing credit is available where Thai tax is deemed payable on dividend income even though the income was exempted in Thailand under an investment promotion regime. Article 23(3) treats the foregone Thai tax as payable for credit purposes, while Article 23(2) allows the credit against Indian tax subject to the treaty ceiling. Because the dividend was taxable in India and the treaty provided the more beneficial relief, section 90(2) permitted the assessee to claim the foreign tax credit, and the disallowance was unsustainable. Case-Laws Income Tax Thu, 24 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=374192