If you're an Indian taxpayer with foreign income, such as dividends from foreign stocks or earnings from the sale of shares/ESOPs of foreign companies, you can benefit from a lower tax rate under section 90 or 91 of the Income Tax Act, 1961. This tax relief is provided through the Double Taxation Avoidance Agreement (DTAA) provisions. If you are eligible for tax relief, section 90 applies under the DTAA provisions. However, if your country of residence has not signed a DTAA with India, then you can seek relief under section 91 of the Indian Income tax law.
"To claim either bilateral relief under a DTAA (section 90) or unilateral relief under Section 91, taxpayers must file an Indian income tax return and provide a tax payment or deduction certificate from the relevant foreign tax authority," says CA Abhishek Soni, co-founder, Tax2Win.

When do you need to claim tax relief under section 90?
According to CA (Dr.) Suresh Surana, Section 90- 'Bilateral relief' applies when a DTAA agreement exists between India and the other country. "This section applies when a DTAA exists. The taxpayer can claim relief based on the provisions of the DTAA, which may include lower tax rates or exemptions," he says.