Indian resident shall be allowed FTC benefit for the tax paid by him in a country or specified territory outside India. FTC benefit shall be allowed in the year in which the corresponding income has been offered to tax or assessed to tax in India.
Foreign tax credit allowed when foreign tax corresponds to income offered or assessed to tax in India in the same year.
Foreign tax credit is available to Indian residents for tax paid in a foreign country or specified territory, and is allowed only in the year when the corresponding income is offered to tax or assessed to tax in India, creating a temporal link between domestic taxation of the income and recognition of the foreign tax credit.
Note: It is a system-generated summary and is for quick reference only.