CBDT proposed foreign tax credit rules
Q. CBDT has opposed simplified ___________ rules to permit companies to claim credit for tax paid overseas.- Published on 19 Apr 16a. Foreign Tax Credit
b. International Tax Credit
c. Global Tax Credit
d. World Tax Credit
ANSWER: Foreign Tax Credit
Central Board of Direct Taxes has proposed foreign tax credit rules to assist corporates. For providing relief to corporates with income abroad, simplified Foreign Tax Credit rules were introduced. These have been formulated to help companies claim credit for taxes paid overseas.
- CBDT said tax credit can be availed by entities paying taxes in the nation including those with Double Taxation Avoidance Agreement.
- Foreign tax credit will be determined by conversion of currency of payment of foreign tax at telegraphic transfer buying are on dates when the tax has been paid or deducted
