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Where Taxpayers and Advisers Meet

Foreign Tax Credit Relief - India interest income on savings

sushd
Posts: 6
Joined: Mon Nov 10, 2014 2:35 pm

Foreign Tax Credit Relief - India interest income on savings

Postby sushd » Thu Jan 17, 2019 9:20 am

Hi,

I am a UK citizen, working and resident in UK.
I have foreign (interest) income in India from savings. The interest income is >£2000. Neither the savings nor the interest income have been transferred to UK.

I am taxed at source by the Indian banks @30%.

Can I claim Foreign Tax Credit Relief on the entire 30% tax that is deducted by Indian Tax authorities?
Or can I claim reflief only on 15% of the income (I believe 15% is the maximum that Indian authorities can deduct under the DTAA between UK and India)?

The reason I am taxed @30% by Indian banks and not @15% is because I have not submitted the DTAA paperwork to Indian banks (annual residency certificate from HMRC).


Thanks in advance.

sushD

sushd
Posts: 6
Joined: Mon Nov 10, 2014 2:35 pm

Re: Foreign Tax Credit Relief - India interest income on savings

Postby sushd » Fri Jan 18, 2019 8:46 pm

Just wanted to add that I am higher rate tax payer (40%).

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Foreign Tax Credit Relief - India interest income on savings

Postby AmanSood » Mon Jan 21, 2019 12:49 pm

You would only be able to claim back the foreign tax credit on the 15% and not the 30%.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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