Claiming Foreign Tax Credit

Can I claim credit of the tax deducted in the USA on income from the sale of shares of my company (ESOP)?

Hi @Dixita

If you are a resident in the financial year, you must report such foreign income in the ITR in India. As per the DTAA agreement between India and the USA, the same income is not taxable in both countries. Thus, if you have paid tax on such income in USA, you can claim the credit of such tax paid by filing Form 67. Tax relief shall be lower of tax paid in USA or tax payable in India and can be reduced from total tax liability in India.

You can refer to the below article for detailed provision of DTAA between India and the USA: DTAA between India and USA | Learn by Quicko
Form 67 : Claiming Foreign Tax Credit | Learn by Quicko

Hope this helps :slightly_smiling_face: