I spent a couple of months working in the USA in 2014-15 and received US salary
I paid Federal and State income tax while I was there

Can I claim tax credit through DTAA 
for Federal Tax paid u/s 90
for State Tax paid u/s 91

I asssume it is only Federal Tax. But I see references to a Tata sons case where ITAT suggested that section 91 can be used to offset state income tax.
Can anyone confirm
Asked 3 years ago in Income Tax from Gurgaon, Haryana
I am not sure of the case relating to Tata Sons. If the income is in the nature of business or professional income, all the expenses incurred to earn such income,including State taxes can be, in my opinion, claimed as deduction.
B Vijaya Kumar
CA, Hyderabad
845 Answers
48 Consultations

5.0 on 5.0

Since there is a DTAA between India and U S and hence relief is covered under DTAA. In my opinion if the state tax is on income then the same can be claimed for rebate.
Vijay N. Kale
CA, Hyderabad
248 Answers
12 Consultations

4.9 on 5.0

As per our view you cannot offset State Tax. We are not having view about Tata Sons as other case laws deny the same 
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

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