What is Section 90 of the Income Tax Act?

HT Posted by: Harsh Tiwari
• 29 September, 2025
4 Reply

Section 90 of the Income Tax Act, which is applied when is DTAA is present. This makes sure that not a single individual who works in a company or any foreign organization pays tax twice. If an individual is working in India or in a foreign country, then the DTAA helps him or her to avoid heavy taxes. It is an agreement that helps to allow them a tax relief through a method of the foreign tax credit or exemption under the bilateral agreements to make sure he or she get only one-time tax deduction.

Tags : Section 90 of Income Tax Act

  • Aarav Sharma 02 October, 2025

    What are the main key provisions of section 90 of the Income Tax Act?

    • S
      Savetaxs 02 October, 2025

      Here are some of the main key provisions of Section 90 of the Income Tax Act, given below: 

       

      • Relief Under the DTAA: Through section 90 of the IT Act, you can get relief under the Double Taxation Avoidance Agreement. 
      • Applicability: Section 90 applies to the different sources of income, which include Interests, dividends, salaries, profits, business, royalties, and capital gains. 
      • Exemption Methods: Under the exemption method, if the income is taxed in a country, then it will be exempted in another country. This will help the individual to avoid paying taxes twice on the same income in a different country. 
      • Credit Method: if the tax paid in one country is credited, then it will be against the other country's tax liability on the income. This results in a lower tax liability and allows the taxpayer to balance the foreign and domestic taxes. 
      • Mutual Agreements Procedure: Section 90 of the IT Act allows MAP, which helps with dispute resolutions under the DTAA. If a taxpayer thinks that he has been taxed according to the DTAA and gets help with the MAP, which is a process between the authorities of two countries to talk to each other and solve the issue fairly. 

       

  • Parth Thakur 30 September, 2025

    How to compute double taxation relief under section 90?

    • S
      Savetaxs 30 September, 2025

      To compute the double taxation relief under section 90, you need to follow the given steps: 

       

      • First, you need to calculate the total global income, which includes your foreign income and Indian income. 
      • Compute the tax on the global income under the Income tax. 
      • Compute the average tax by dividing the tax by global income. 
      • Multiply the average rate of tax by foreign income. 
      • Now, calculate the tax paid in a foreign country. 

       

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