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Q. > Please Help: DTAA - India -Australia
Facts:
• Assesse earned income in Australia, Rs.526,000/ on which tax deducted and withheld in Australia is Rs.1,56,000/-(TDS certificate submitted). This income is not attributable to India.
• Assesse is a tax resident both in India and Australia during the relevant FY. Also assesse is an Australian citizen per definition 3(k) of DTAA.
• Indian ITO wants to include the Australian income with Indian income and tax it in India at applicable tax rate @30% and after that give credit of the above tax paid of Rs.1,56,000/-
Kindly help to know if the ITO is justified since the DTAA does not clearly mentions anywhere that he can do so. DTAA mentions that the income earned in contracting state shall be taxed in that state. Article 14 & 15 of DTAA.
CA Sansaar

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