Resident taxpayers are now required to disclose in their income tax
returns all incomes derived in treaty countries and where such income
may be taxed.

Such foreign source incomes have to be included in the total income
chargeable to tax in India, but the Indian resident would be allowed to
avail himself relief of double taxation through the `elimination
method' or any other method specified in the DTAA (Double Taxation
Avoidance Agreements), according to a CBDT notification issued here.

A DTAA seeks to eliminate double taxation through exemption method
(also known as elimination) or credit method. In credit method, the
residence country grants credit for taxes paid by its resident in the
source country. In exemption method, the residence country exempts the
income that has arisen in the source country.