Article 23 - Elimination of Double Taxation
Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax credit.
India follows the credit method: tax paid in Canada on income that is also taxed in India is allowed as a credit against the Indian tax payable on the same income. The credit is limited to the lower of (a) tax paid in Canada or (b) Indian tax attributable to that income.
Form 67 must be filed before the ITR filing due date to claim the foreign tax credit; late filing results in disallowance. The procedural framework is set out in Rule 128 of the IT Rules 2026 (formerly Rule 128 of the 1962 Rules).
Source-rule corollary: Where Canada also uses the credit method, the same mechanism operates in reverse for Canada residents earning Indian-source income.