Process to Enter DTAA & Foreign Tax Relief Details

ExpressITR || Process to Enter DTAA & Foreign Tax Relief Details


This guide explains the process for entering DTAA (Double Taxation Avoidance Agreement) and Foreign Tax Relief details in Spectrum CLOUD-ITR.
The process involves entering the foreign income details under the appropriate income head and claiming the applicable relief under Section 90, Section 90A, or Section 91 as applicable.

Step 1: Open the Client Profile
  1. Open Spectrum CLOUD-ITR and select the required Client Profile.
  2. Navigate to the ITR Summary section.
  3. Select File Original Return to proceed with the return preparation.

Step 2: Open DTAA & Foreign Tax Relief
  1. Navigate to Income Head.
  2. Select DTAA & Foreign Tax Relief.
  3. Use this section to enter the applicable DTAA / Other Than DTAA income and claim the corresponding Foreign Tax Relief.
      DTAA & Foreign Tax Relief

Step 3: Add Country and DTAA Details
Click Add Country and enter the required details:

      Add Country

Field Details to be Entered
 Country Name  Select/enter the country from which the foreign income was received.
 TIN / Tax ID / Passport Number  Enter the applicable Tax Identification Number (TIN), Tax ID, or Passport Number.
 Section  Select the applicable section: Section 90 / 90A for DTAA or Section 91 for Other Than DTAA.
 Article of DTAA  Select/enter the applicable Article of the DTAA.

      Country Name, TIN, Section, Article of DTAA


Methods for Entering Income in Schedule DTAA
Foreign income can be entered in Schedule DTAA using the following two methods, depending on whether the income is taxable at the normal rate or a special rate.


Method 1: Income Chargeable at the Normal Rate

If the foreign income is chargeable to tax at the normal applicable rate, the income should be entered under the respective Income Head.
The applicable income heads may include:
  1. Salary
  2. House Property
  3. Business / Profession
  4. Capital Gains
  5. Other Sources
Example
If the foreign income is taxable under Other Sources and is chargeable at the normal tax rate:
  1. Enter the income under the Other Sources income head.

    Other Source Income


  2. Do not enter the same income again under Other Sources (DTAA).
  3. After entering the income, proceed to the Relief section to claim the applicable Foreign Tax Relief.

    Relief

Enter Foreign Tax Relief Details
Under the Relief section, enter the following details:
  1. Income – Enter the amount of foreign income eligible for relief.
  2. Tax Payable in India – Enter the tax payable in India on the eligible income.
  3. Tax Paid Outside India – Enter the amount of tax paid in the foreign country.
  4. Relief – The applicable relief is calculated automatically based on the lower of the eligible tax payable in India and the tax paid outside India, subject to the applicable provisions.


Method 2: Income Chargeable at a Special Rate

If the foreign income is chargeable to tax at a special rate, the income should be entered under:  DTAA & Foreign Tax Relief → Other Sources (DTAA)

Example
If the foreign income falls under Other Sources, is covered under one of the applicable sections available in the list, and is taxable at a special rate:
  1. Navigate to DTAA & Foreign Tax Relief.
  2. Select Other Sources (DTAA).

    Other Sources (DTAA)

  3. Select the applicable section.
  4. Enter the relevant foreign income details.
Enter Foreign Tax Relief Details
After entering the income details, proceed to the Relief section and enter:
  1. Income – Enter the amount of foreign income eligible for relief.
  2. Tax Payable in India – Enter the applicable tax payable in India.
  3. Tax Paid Outside India – Enter the tax paid in the foreign country.
  4. Relief – The applicable relief is calculated automatically based on the lower of the eligible tax payable in India and the tax paid outside India, subject to the applicable provisions.
      Relief 
    
Note:
  1. Select Section 90 / 90A when the foreign income is covered under an applicable DTAA.
  2. Select Section 91 where relief is claimed for income from a country with which India does not have an applicable DTAA.
  3. Ensure that the Country Name, TIN / Tax ID / Passport Number, Section, and Article of DTAA are entered correctly.
  4. Avoid reporting the same foreign income twice—once under the respective Income Head and again under Other Sources (DTAA).
  5. The method of reporting depends on whether the income is taxable at the normal rate or a special rate.
  6. Verify the Tax Payable in India and Tax Paid Outside India before claiming Foreign Tax Relief.
  7. The system calculates the eligible relief based on the applicable rules and the lower of the relevant tax amounts.