Article 24 - Elimination of Double Taxation - Czech Republic

ARTICLE 24 ELIMINATION OF DOUBLE TAXATION 1. The laws in force in either of the Contracting State will continue to govern the taxation of income and of capital in the respective Contracting States except where provisions to the contrary are made in this Convention. 2. In the case of India double taxation shall be eliminated as follows: Where a resident of India derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the Czech Republic, India shall allow as a deduction from the tax on the income or capital of that resident an amount equal to the tax paid in the Czech Republic whether directly or by deduction at source. Such amount shall not however exceed that part of the tax, as computed before the deduction is given, which is attributable to the income or capital which may be taxed in the Czech Republic. 3. In the case of the Czech Republic double taxation shall be eliminated as follows: Where a resident of the Czech Republic derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in India, the Czech Republic shall allow as a deduction from the tax on the income or capital of that resident an amount equal to the tax paid in India. Such deduction shall not, however, exceed that part of the tax as computed before the deduction is given, which is attributable to the income or capital which may be taxed in India. 4. The tax payable in the Contracting State mentioned in paragraphs 2 and 3 of this Article shall be deemed to include the tax which would have been payable but for the tax incentives granted under the laws of the Contracting State and which are designed to promote economic development. 5. Where, in accordance with any provision of this Convention, income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.