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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 24

Methods for Elimination of Double Taxation

(1) In India, double taxation shall be eliminated as follows:

  • (a) Where a resident of India derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Lithuania, India shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Lithuania;
    • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Lithuania.
  • Such deduction in either case shall not, however, exceed that portion of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in Lithuania.
  • (b) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

(2) In Lithuania, double taxation shall be eliminated as follows:

  • (i) Where a resident of Lithuania derives income or owns capital which, in accordance with this Agreement, may be taxed in India, unless a more favourable treatment is provided in its domestic law, Lithuania shall allow:
    • (a) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid thereon in India;
    • (b) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in India.
  • Such deduction in either case shall not, however, exceed that part of the income tax or capital tax in Lithuania, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in India.