Which section of the Income Tax Act 1961 mentions unilateral relief?

Correct option is C

Section 91 of the Income Tax Act, 1961, provides unilateral relief to Indian residents who earn income in a foreign country that does not have a Double Taxation Avoidance Agreement (DTAA) with India. This relief ensures that taxpayers do not suffer double taxation on the same income.
Information Booster:
1. Unilateral relief is granted when no DTAA exists between India and the foreign country.
2. The relief is calculated based on the lower tax rate of India or the foreign country.
3. Only residents of India can claim this relief.
4. Section 90 provides relief under DTAA agreements, unlike Section 91.
5. Taxpayers must provide proof of foreign income and tax paid to claim relief.
6. It applies to various income sources, including salary, business profits, and capital gains.
Additional Knowledge:
· DTAA helps avoid double taxation between two countries.
· India has DTAA agreements with more than 80 countries.
· Foreign Tax Credit (FTC) is a similar mechanism for reducing tax liability on foreign income.