Article 24 - Elimination of Double Taxation - Poland

1 [ARTICLE 24 ELIMINATION OF DOUBLE TAXATION 1. In case of India, double taxation shall be avoided as follows: (a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Poland, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Poland. 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 Poland. (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. 2. In case of Poland, double taxation shall be avoided as follows: (a) Where a resident of Poland derives income which, in accordance with the provisions of this Agreement may be taxed in India, shall allow as a deduction from the tax on the income of that resident, an amount equal to the income 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 such income or capital gains derived from India. (b) Where in accordance with any provision of this Agreement, income derived by a resident of Poland is exempt from tax in Poland, Poland may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. ] **************** NOTES:- 1 . Substituted vide Notification No. 47/2014 dated 24-09-2014 before it was read as, ARTICLE 24 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. In both the Contracting States, double taxation will be avoided in the following manner: (a) Where a resident of a Contracting State derives income which, in accordance with the provisions of this agreement, may be taxed in the other Contracting State, the first-mentioned State shall, subject to the provisions of sub-paragraph (b) of this paragraph, exempt such income from tax but may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the exempted income has not been so exempted. (b) Either of the Contracting States when imposing taxes on its residents may include in the tax base upon which such taxes are imposed the items of income which according to the provisions of articles 11, 12 and 13 of this Agreement may also be taxed in the other State but shall allow as a deduction from the amount of tax computed on such a base an amount equal to the tax paid in other Contracting State. Such deduction shall not, however, exceed that part of tax leviable by the first-mentioned State, as computed before the deduction is given, which is appropriate to the income which, in accordance with the provisions of Articles 11, 12 and 13 of this Agreement, may be taxed in the other State. 3. For the purpose of sub-paragraph (b) of paragraph 2 the term tax paid in the other Contracting State shall be deemed to include any amount which would have been payable as tax but for any relief by way of a deduction allowed in computing the taxable income or an exemption or a reduction of tax or otherwise under the laws relating to taxation of income in force in that other Contracting State.