Double Taxation Avoidance Agreement Consultancy

Income can be subject to double taxation when it is taxed both in the country where it’s earned, often referred to as the ‘source country,’ and in the country where the person earning the income resides, known as the ‘residence country.’ For instance, consider a scenario where a Non-Resident Indian (NRI) resides in the USA but earns income in India. In such cases, the NRI is liable to pay taxes on their income both in the source country, India, and in their residence country, the USA.

Double Taxation Avoidance Agreement Double Taxation means the same income getting taxed twice in hands of same assesse. Any country taxes income on the basis of two rules i.e. Residence Rule & Source Rule. Double Taxation is possible when assesse is Resident of one country & derives income from another country.

DTAA makes provision for elimination on double taxation in one of the following manner:

• Granting exclusive right to tax to one of the countries.

• Granting taxing rights to both countries but making a provision for limiting the rate of taxation of each country.

• Granting right to resident of another country to obtain credit for taxes paid in the source country.

We at CA Atul Mangal & Co. offer DTAA advisory and tax compliance services to both Indian & Multinational Clients. And provide tax management services to NRIs too, by following the jurisdiction of the Indian laws and regulations along with overseas countries & Double Taxation Avoidance Agreements (DTAA)