New Delhi, July 29 -- A taxpayer who mistakenly reported his Australian salary in his Indian income tax return (ITR) has secured relief from the Delhi bench of the Income Tax Appellate Tribunal (ITAT), which ruled that the income was not taxable in India under the India-Australia Double Taxation Avoidance Agreement (DTAA). However, the tribunal also held that he could not claim a foreign tax credit (FTC) of Rs.3.4 lakh for taxes paid in Australia because the income itself was not taxable in India.

According to an ET Wealth report, the taxpayer had earned a salary of Rs.14.16 lakh while working in Australia during the relevant financial year. Although the salary was taxed in Australia, he inadvertently declared it as taxable income in his...