A lot of immigrants face numerous doubts regarding the payment of Income tax. They often find themselves in a dilemma whether to pay income tax in their home country or in which they have earned their income (a Source Country). Of course, it is not fair to pay tax on the same income in every country you migrate to. What is the solution then?
It is here when the “Double Taxation Avoidance Agreement” signed by India comes to your rescue. It is an amicable solution to solve the confusing scenario of double taxation. To avoid hardships and ensure that the immigrant pays a fair tax in accordance with his income, India entered into Double Tax Avoidance Treaty with various countries. Under the same, the concerned person may be exempted from paying the tax or the tax liability in India would be reduced, depending upon the individual’s case study.
- Avoid being taxed more than once and offer an equality-based system.
- Prevention of discrimination between the taxpayers and offering an element of legal aspect. That means all tax-payers would be treated equally and none would be provided with any preferential treatment in taxing by any of the 66 contracting countries.
Who is entitled for the “Double Taxation Avoidance Agreement- India?”
All those people who are Indian residents or residents of any of the 66 concerned countries, with which India has entered into the agreement, are covered under the agreement and are entitled to the benefits associated with it.
There is no end to the laws and regulations associated with your Immigration procedure. It would be a better option to hire the services of an Immigration and Visa expert for every concerned matter.