Salary earned from employment outside India is not subject to taxation in India unless the individual is a resident of India for tax purposes.

The primary objective of a tax treaty is to avoid double taxation of income, which occurs when the same income is taxed in two or more countries.

The foreign tax credit method allows taxpayers to claim a credit against their domestic tax liability for taxes paid on foreign income.

The purpose of the limitation on the foreign tax credit is to ensure that the credit does not exceed the taxpayer's domestic tax liability on the foreign income.

Nationality is not a factor considered in determining the country of residence for tax purposes.

Dual residency is the term used to describe the situation where a taxpayer is considered a resident of two or more countries for tax purposes.

Taxation on a worldwide basis is not a method used to resolve cases of dual residency.

The purpose of the mutual agreement procedure under a tax treaty is to resolve disputes between taxpayers and tax authorities.

Increased tax revenue for governments is not a benefit of entering into a tax treaty.

Double taxation is the term used to describe the situation where a taxpayer is subject to tax on the same income in two or more countries.

Employment income is typically not covered by a tax treaty.

Tax exemption is the term used to describe the situation where a taxpayer is exempt from paying tax on certain types of income.

Treaty method is not a method used to avoid double taxation of business profits.

Foreign tax deduction is the term used to describe the situation where a taxpayer is allowed to deduct a certain amount of foreign taxes paid from their domestic tax liability.

Exchange rate is not a factor considered in determining the effective tax rate on foreign income.