If a person has paid tax on the sale of property in India, then he can get a tax credit of the taxes paid in India, which will reduce his tax liability in the other country. Two methods are specified to claim tax relief – the exemption method and the tax credit method. In the exemption method, NRIs have to pay tax in only one country and have to be exempted in the other. In the tax credit method, if the income is taxed in both countries, tax relief can be claimed in the country of residence.
