Residents must report global income; use DTAA to claim exemptions or tax credits for certain foreign earnings and file proper documentation.
This infographic explains how Indian taxpayers can claim tax exemptions on foreign income. Residential status determines taxability: residents report global income, NRIs only Indian income. DTAA provides exemptions or tax credits for salary, dividends, or business profits. Use Form 67 for foreign tax credits and maintain proof of foreign tax paid. Declare foreign income under the correct head in ITR-2 or ITR-3 and report exempt income separately.