Double Taxation Avoidance In India


Double taxation occurs when an individual is required to pay two or more taxes for the same income, asset, or financial transaction in different countries. Double taxation occurs mainly due to overlapping tax laws and regulations of the countries where an individual operates his business.

When an Indian person makes a profit or some other type of taxable gain or receives any income in another country, he may be in a situation where he will be required to pay a tax on that income in India, as well as in the country in which the income was made. To protect Indian tax payers from this unfair practice, the Indian government has entered into tax treaties, known as Double Taxation Avoidance Agreement (DTAA) with 65 countries, including U.S.A, Canada, U.K, Japan, Germany, Australia, Singapore, U.A.E, and Switzerland. DTAA ensures that India's trade and services with other countries, as well the movement of capital are not adversely affected.


We at Ahuja & Ahuja provide advisory services to Indian Clients, Multinational Clients having interest in India and NRI for better tax management keeping in view the laws of India as well as overseas countries and Double Taxation Avoidance Agreements (DTAA) if any executed.