How does double taxation avoidance agreement work in the context of CGT paid in India on the foreign tax treatment?

How does double taxation avoidance agreement work in the context of CGT paid in India on the foreign tax treatment?

How does double taxation avoidance agreement work in the context of CGT paid in India on the foreign tax treatment?

In case the non-resident pays any tax on capital gains arising in India, he would normally be able to obtain a tax credit in respect of the taxes paid in India in the home country, because the income in India would also be included in the country of tax residence. The amount of the tax credit as also the basis of computing the tax credit that can be claimed are specified in the respective country’s DTAA and is also dependent on the laws of the home country where the tax payer is a tax resident.