alleryStart learning →Under the exemption method, foreign income is
Ataxed only after ten years
Bexempted from tax by the home country
Ctaxed with a credit for foreign tax
Dtaxed twice at lower rates
Answer & Solution
Correct answer: B. exempted from tax by the home country
In the exemption method the home country exempts foreign-source income from its own tax.
Keep practising Double Taxation
Browse all Double Taxation questions for CA Final, or explore more Taxation topics.
Related questions
One test of residence in India under the Income-tax Act is a stay of at least how many dayAfter which leaks did the EU and OECD seek automatic exchange of information on tax rulingWhich WTO agreement recognises advance rulings?Customs advance rulings commonly deal with which matter?A ruling may be modified or revoked because of which development?An advance ruling typically does not bind courts or whom else?A deemed paid credit covers taxes paid by which entity on dividends received?Singapore grants foreign tax credit only to whom?