International taxation

International taxation deals with income that crosses borders: the same income may be taxed by two countries — once where it arises and once where the earner resides. Worked example: if an Indian resident earns business profits in a foreign country that taxes them at 20%, and India taxes the same profits at 30%, double taxation relief (unilateral credit or a treaty) ensures the resident does not pay 50% on the same income — the foreign tax is credited against the Indian tax.