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ARTICLE 24

Methods for Elimination of Double Taxation

(1) The laws in force in either of the Contracting States shall continue to govern the taxation of income and capital in the respective Contracting States except where express provisions to the contrary are made in this Agreement.

(2) Double taxation shall be eliminated as follows:

  • (A) In India:
    • (a) Where a resident of India derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Norway, 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 Norway on that income;
      • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Norway on that capital;
    • Such deduction 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 Norway.
    • (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.
  • (B) In Norway:
    • (a) Where a resident of Norway derives income or owns elements of capital which, in accordance with the provisions of this Agreement, may be taxed in India, Norway shall allow:
      • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in India on that income;
      • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in India on elements of capital.
    • Such deduction in either case shall not, however, exceed that part 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 same elements of capital which may be taxed in India.
    • (b) Where in accordance with any provision of the Agreement, income derived or capital owned by a resident of Norway is exempt from tax in Norway, Norway may nevertheless include such income or capital in the tax base, but shall allow as a deduction from the Norwegian tax on income or capital that part of the income tax or capital tax, as the case may be, which is attributable to the income derived from India or the capital owned in India.