How to claim tax benefit on double tax treaty with Sweden?
Live MintI have been working with ABC India Pvt Ltd since 8 June 2015 and have been buying ABC Inc. shares from June 2015 to Aug 2017. As per Article 24 of the DTAA, in case you qualify as a Resident of India under the DTAA and the dividend has been taxed in Sweden in accordance with the DTAA provisions, a credit of the proportionate taxes paid in Sweden on the dividend income may be explored, against the tax payable in India on the dividend income. 3) In relation to taxability of sale proceeds from the shares, as per the provisions of the Act, any profits or gains arising from the transfer of capital asset shall be chargeable to income tax under the head “Capital Gain” and shall be deemed to be the income of the FY in which such transfer took place. STCG and LTCG will be taxable as follows: - STCG: As per provisions of Schedule I to the Finance Act, STCG from sale of shares will be taxable at the marginal tax rates applicable to the taxpayer in India. - LTCG: As per section 112 of the Act, LTCG from sale of shares will be taxable @20% – plus applicable cess and surcharge In case of any double taxation on the gains from the sale of such shares, mitigation of double taxation can be explored as per provisions of section 90 of the Act / provisions of Article 13 and Article 24 of the DTAA, as applicable.
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