Article 23 - Elimination of double taxation - New Zealand

ARTICLE 23 ELIMINATION OF DOUBLE TAXATION 1. (a) Subject to the provisions of the law of New Zealand relating to the allowance as a credit against New Zealand tax of tax paid in any country other than New Zealand (which shall not affect the general principle hereof), Indian tax paid under the law of India and consistently with Convention, whether directly or by deduction, in respect of income derived by a resident of New Zealand from sources in India (excluding, in the case of a dividend, tax paid in respect of the profits out of which the dividend is paid), shall be allowed as a credit against New Zealand tax payable in respect of that income. (b) For the purposes of this Article, income of a resident of New Zealand which in accordance with the provisions of this Convention may be taxed in India shall be deemed to arise from sources in India. 2. (a) Subject to the provisions of the law of India relating to the allowance as a credit against Indian tax or tax paid in any country other than India (which shall not affect the general principle hereof), New Zealand tax paid under the law of New Zealand and consistently with this Convention, whether directly or by deduction, in respect of income derived by a resident of India from sources in New Zealand (excluding, in the case of a dividend, tax paid in respect of the profits out of which the dividend is paid), shall be allowed as a credit against Indian tax payable in respect of that income. (b) For the purposes of this article, income of a resident of India which in accordance with the provisions of this Convention may be taxed in New Zealand shall be deemed to arise from sources in New Zealand. 3. For the purposes of paragraph (1) the term Indian tax paid shall be deemed to include any amount which would have been payable as Indian tax but for a deduction allowed in computing the taxable income or an exemption or reduction of tax granted for that year under sections 10(4), 10(4A), 10(15)(iv) of the Income-tax Act, 1961 and any other provision to be agreed between the competent authorities of both Contracting States: Provided that the credit for the Indian tax to be so allowed shall not exceed the smaller of : (a) the New Zealand tax which would have been payable under New Zealand law but for the provisions of this paragraph; and (b) where applicable, the limitation of tax agreed to in the relevant Articles of this Convention. ************* NOTES:- 1. Also see Notification No. S. O. 166(E) dated 05-03-1997 before it was read as