Methods for elimination of Double Taxation

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....s, relief from double taxation shall be given in accordance with this Article. 2. Double taxation shall be eliminated as follows: (i) In India: a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Bhutan, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Bhutan. ....

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....s computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in India. b) Where in accordance with any provision of the Agreement, income derived by a resident of Bhutan is exempt from tax in Bhutan, Bhutan may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 3....

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....otwithstanding the provisions of paragraph 3, Bhutanese tax shall not be deemed to have been paid under that paragraph of this Article in respect of: (i) income by way of dividends, interest, capital gains or from activities not directly connected with the running of educational or vocational institute or health service centre or hospital, as the case may be; or (ii) income derived from any ar....