Tax Rates Under India-USA DTAA Include Surcharge, Surtax & Education Cess, Rules ITAT Based on Treaty Provisions & Case Laws.

The ITAT ruled that under the India-USA DTAA, tax rates include surcharge, surtax, and education cess for income earned in India. According to Article 2(1)(b)(i) & (ii) of the DTAA, surcharge and surtax are part of the maximum rates specified in Articles 10 and 11. Since cess is considered an additional surcharge, it is also included in the DTAA tax rates. The ITAT instructed the CPC to recalculate the tax liability of a US citizen residing in India by incorporating the education cess into the DTAA rates, based on relevant case laws and treaty provisions. .....

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