What is Section 90 of the Income Tax Act?

One thing that confused me initially was the difference between Section 90 and Section 91.

Section 90 is generally associated with relief where India has entered into a tax treaty with another country. Section 91 deals with unilateral relief in certain situations where there isn't an applicable DTAA.

So if you're an NRI in the US, you would normally first check whether the India-US DTAA applies to your particular income before looking at the relief mechanism.

Also, don't assume that all income is treated the same way. Interest, dividends, salary, capital gains, pensions, and other types of income can have different treaty provisions.

The TRC/Form 10F question is also worth checking separately because documentation requirements can depend on the type of DTAA benefit being claimed and the taxpayer's circumstances.

For anything involving a substantial amount of tax, I'd verify the current Income Tax Department guidance or speak with a qualified tax professional rather than relying solely on a forum answer.

I think the easiest way to understand Section 90 is that it provides the framework for India to give effect to certain tax treaties with other countries.

The actual DTAA is what you need to read for your particular situation. For example, the India-US treaty has provisions dealing with different categories of income, and those provisions can determine whether India, the US, or both countries can tax particular income.

There can also be a difference between exemption and foreign tax credit methods of relief. So saying “I already paid tax abroad” isn't enough by itself to determine what happens in India.

I haven't personally dealt with every type of foreign income, but for my Indian return I kept my foreign tax documents and checked the applicable treaty provisions.

If you're using Section 90 for an India-US situation, I'd also check whether you need a Tax Residency Certificate (TRC) and whether Form 10F or other documentation is applicable to your particular claim.

Tax rules can change, so I'd verify the current requirements for the relevant assessment year rather than relying on an older tax article.

Section 90 is basically one of the important provisions for taxpayers dealing with international taxation and DTAA relief.

My understanding from filing as an NRI is that Section 90 allows India to enter into agreements with other countries for avoiding double taxation and preventing tax evasion. So if you're a tax resident or taxpayer dealing with income that is potentially taxable in both countries, the applicable treaty can become very important.

The key point is that you shouldn't look at Section 90 alone. You also need to look at the specific India-US DTAA and determine which country's taxing rights apply to the particular type of income.

I had initially assumed that if tax was paid in the US, I could automatically deduct the same amount from my Indian tax. That's not how I understand it now. The treaty and Indian tax rules determine what relief is available and how it is claimed.

For documentation, I was advised to keep my foreign tax records and Tax Residency Certificate where applicable. The exact requirements can depend on the type of income and the relief being claimed.

I initially thought Section 90 automatically exempted foreign income from Indian tax, but that's not how it works.

The benefit depends on factors like your residential status, the type of income, and the provisions of the applicable DTAA. In my case, I had to provide additional documentation to support my claim.

If you're filing the return yourself, make sure you understand which income qualifies for relief and retain copies of documents such as the TRC and proof of taxes paid abroad.

I'm based in the UK and also receive rental income from India.

Section 90 definitely came up during my tax filing because India and the UK have a DTAA. My chartered accountant reviewed which country had the primary taxing rights for different types of income and then claimed the available relief accordingly.

Every DTAA is a little different, so I wouldn't assume the same rules apply to every country or every type of income. It's worth checking the treaty that applies to your country of residence.