Tax payable on rental income may not be the rent charged

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the deduction for interest paid or payable on housing loans. It appears that you receive a rent of Rs 1.44 lakh a year and pay interest on housing finance of Rs 1.90 lakh. The loss incurred by you from "the income from house property" as per the law can be setoff against your incomes against any other head, except 'capital gains'.

I recall reading in the newspapers a couple of years ago that a protocol was signed between the governments of the US and India, whereby income earned in one country was not to be taxed in the other country. I am a potential beneficiary of such an agreement (if it exists), since my pension is earned in the US but taxed in India. I would like to know that such an exemption exists in the Income Tax Rules; and if it does exist, the section/subsection providing such an exemption.

—Bhuskute

As per the provisions of Article 18 and Article 19 of Double Tax Avoidance Agreement between the US and India, pension earned from the US by a person who has subsequently relocated to India will only be taxed in India.

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