Direct Tax Avoidance Agreements

TAJIKISTAN

Article 23

METHODS FOR ELIMINATION OF DOUBLE TAXATION

1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement.

2. Double taxation shall be eliminated as follows: In India:

a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Tajikistan, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Tajikistan.

Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Tajikistan.

b) Where in accordance with any provision of the Agreement income derived by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

3. In Tajikistan:

a) Where a resident of Tajikistan derives income which, in accordance with the provisions of this Agreement, may be taxed in India, Tajikistan shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in India.

Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in India.

b) Where in accordance with any provision of the Agreement, income derived by a resident of Tajikistan is exempt from tax in Tajikistan, Tajikistan may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.