Section 91 of Income Tax Act "Countries with which no agreement exists"
91. (1) If any person who is resident in India in any previous year proves that, in respect of his income which accrued or arose during that previous year outside India (and which is not deemed to accrue or arise in India), he has paid in any country with which there is no agreement under section 90 for the relief or avoidance of double taxation, income-tax, by deduction or otherwise, under the law in force in that country, he shall be entitled to the deduction from the Indian income-tax payable by him of a sum calculated on such doubly taxed income at the Indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal.
(2) If any person who is resident in India in any
previous year proves that in respect of his income which
accrued or arose to him during that previous year in
Pakistan he has paid in that country, by deduction or
otherwise, tax payable to the Government under any law for
the time being in force in that country relating to taxation
of agricultural income, he shall be entitled to a deduction
from the Indian income-tax payable by him-
(a) of the amount of the tax paid in Pakistan under any law
aforesaid on such income which is liable to tax under this
Act also; or
(b) of a sum calculated on that income at the Indian rate of
tax;
whichever is less.
(3) If any non-resident person is assessed on his share in
the income of a registered firm assessed as resident in
India in any previous year and such share includes any
income accruing or arising outside India during that
previous year (and which is not deemed to accrue or arise in
India) in a country with which there is no agreement under
section 90 for the relief or avoidance of double taxation
and he proves that he has paid income-tax by deduction or
otherwise under the law in force in that country in respect
of the income so included he shall be entitled to a
deduction from the Indian income-tax payable by him of a sum
calculated on such doubly taxed income so included at the
Indian rate of tax or the rate of tax of the said country,
whichever is the lower, or at the Indian rate of tax if both
the rates are equal.
Explanation.-In this section,-
(i) the expression "Indian income-tax" means income-tax
charged in accordance with the provisions of this Act;
(ii) the expression "Indian rate of tax" means the rate
determined by dividing the amount of Indian income-tax after
deduction of any relief due under the provisions of this Act
but before deduction of any relief due under this Chapter,
by the total income;
(iii) the expression "rate of tax of the said country" means
income-tax and super-tax actually paid in the said country
in accordance with the corresponding laws in force in the
said country after deduction of all relief due, but before
deduction of any relief due in the said country in respect
of double taxation, divided by the whole amount of the
income as assessed in the said country;
(iv) the expression "income-tax" in relation to any country
includes any excess profits tax or business profits tax
charged on the profits by the Government of any part of that
country or a local authority in that country.