What is the difference between Section 90 and 90A?

VB Posted by: Vihaan Basu
• 01 October, 2025
3 Reply

Section 90 is applicable when there is a DTAA signed between India and a foreign country. Under this section, you can get relief in the form of a foreign tax credit or exemption, which depends on the DTAA terms of both countries.

Whereas, Section 90A is only applicable if there is a DTAA between two associations or organizations between two countries. However, under Section 90A, you can only get foreign credit tax relief, not claim a tax exemption.

Tags : difference between Section 90 and 90A

  • Ayush Patel 04 October, 2025

    Section 90 of the IT Act applies when there is a DTAA applicable between India and other countries. On the other hand, Section 90A is applicable when there is a DTAA that applies to the association or organization of the two different countries.

  • Radhika Raina 03 October, 2025

    How to compute tax relief under sections 90 and 90A?

    • S
      Savetaxs 04 October, 2025

      Here are the steps to compute tax relief under section 90 of the Income Tax Act: 

       

      • You need to calculate the computing tax relief of the income generated in both Indian and foreign income. 
      • You need to calculate the tax paid in India on the total amount. 
      • Then divide the amount of tax paid in India by the total amount to get the average tax. 
      • Multiply the average tax by the foreign income to get the amount of tax paid in India by the foreign income. 
      • Calculate the total amount of tax paid in a foreign country. 
      • Now, compare the amount you have paid in India on foreign income, and the lower two amounts will be the maximum relief that you can get under Section 90 of the Income Tax Act. 

       

      Follow the steps to compute the tax relief under Section 90A of the Income Tax Act.

       

      • First, you need to determine the type of tax applicable to you. 
      • Now, you have to identify the tax rates applicable to you in the foreign country where you earned the money. 
      • Compares the two tax rates and identifies the lower tax rate. 
      • Then, you need to multiply the lower tax by your foreign income. 
      • The amount you will see will be the maximum relief you can get under section 90A of the Income Tax Act.

       

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