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Global mobility has made cross-border taxation increasingly complex. Whether you are an NRI, OCI Card Holder, foreign national, expatriate, global executive, foreign investor, or multinational company, income earned across multiple countries may become taxable in more than one jurisdiction. Without proper planning, this could result in double taxation, increased compliance obligations, and unnecessary tax costs.
India has signed Double Taxation Avoidance Agreements (DTAAs) with more than 90 countries, including the United States, United Kingdom, Canada, UAE, Singapore, Australia, Germany, France, Japan, Netherlands, Switzerland, Ireland, and many others. These tax treaties allocate taxing rights between countries and provide relief through treaty exemptions, reduced withholding tax rates, and Foreign Tax Credits.
At Dinesh Aarjav & Associates, we provide specialised DTAA consultancy services for NRIs, foreign residents, overseas investors, multinational companies, startups, and globally mobile individuals. Our advisory covers India-US DTAA, India-UK DTAA, India-Canada DTAA, India-UAE DTAA, India-Singapore DTAA, Form 10F filing, Tax Residency Certificates (TRC), Foreign Tax Credit (FTC), Permanent Establishment (PE) analysis, royalty and FTS planning, cross-border investment structuring, and international tax compliance.
Our multidisciplinary team of Chartered Accountants, US CPAs, Enrolled Agents (EAs), ACCAs, and international tax professionals helps clients optimise tax positions while ensuring compliance with the Income Tax Act, Income Tax Act 2025, FEMA regulations, and international tax treaties.
A Double Taxation Avoidance Agreement (DTAA) is a bilateral tax treaty entered into between two countries to ensure that the same income is not taxed twice. It establishes which country has the primary right to tax a particular type of income and provides mechanisms to eliminate or reduce double taxation.
For example, an NRI living in the USA who earns rental income from property in India may be liable to tax in both India and the United States. The India–USA DTAA helps determine how this income should be taxed and whether the taxpayer can claim relief through reduced withholding tax rates or a Foreign Tax Credit.
DTAA provisions apply to various categories of income, including:
The exact treatment depends on the specific treaty and the facts of each case.
Cross-border taxation is no longer limited to multinational corporations. Today, individuals routinely earn income from multiple countries through employment, investments, business ownership, rental properties, retirement accounts, and digital businesses.
Without proper treaty planning, taxpayers may face:
A well-planned DTAA strategy helps taxpayers legally minimise tax exposure while remaining fully compliant with both countries' tax laws.
Our DTAA consultancy assists clients with:
India has one of the largest tax treaty networks in the world, with Double Taxation Avoidance Agreements signed with more than 90 countries. These treaties promote international trade and investment by reducing double taxation and providing certainty regarding cross-border taxation.
Our firm regularly advises clients under treaties involving:
Each treaty contains unique provisions governing:
Selecting the correct treaty article is critical because provisions differ significantly from one country to another. For example, the India–USA DTAA contains provisions that differ from the India–UAE or India–Singapore treaties in areas such as royalties, technical services, pensions, and treaty benefits.
A properly applied Double Taxation Avoidance Agreement can provide significant tax and compliance advantages for individuals and businesses engaged in international transactions.
The primary objective of DTAA is to prevent the same income from being taxed twice in different countries.
Many treaties provide reduced tax rates on:
Taxes paid in one country may be available as a credit in another country, reducing the overall tax burden.
Treaties clearly allocate taxing rights between countries, reducing ambiguity and disputes.
Proper treaty planning can minimise disputes relating to tax residency, withholding taxes, and cross-border income.
DTAA provisions help businesses and investors structure international investments more efficiently.
Reduced withholding tax improves liquidity and overall investment returns.
Proper documentation, including Tax Residency Certificates and Form 10F, helps taxpayers claim treaty benefits correctly.
Our DTAA services are designed for individuals and businesses with cross-border income or investments.
We regularly advise:
Whether you receive foreign salary, own overseas investments, earn royalty income, or operate a cross-border business, professional DTAA advice can significantly improve tax efficiency.
Most Double Taxation Avoidance Agreements eliminate double taxation using one of two methods.
Under the Exemption Method, income taxed in one country may be exempt from tax in the other country, subject to the specific treaty provisions.
This method is generally applied where the treaty allocates exclusive taxing rights to one jurisdiction.
Examples may include certain categories of employment income, pensions, or business profits depending on the relevant treaty.
The Tax Credit Method is the most commonly used mechanism under India's tax treaties.
Under this approach, income may be taxable in both countries, but the country of residence generally allows a credit for taxes paid in the source country.
For example:
This method significantly reduces double taxation while ensuring compliance with both jurisdictions.
The sale of immovable property is one of the most common cross-border transactions undertaken by NRIs. Where an NRI is a tax resident of another country, the taxation of capital gains may be governed by both the Indian Income Tax Act and the applicable Double Taxation Avoidance Agreement (DTAA).
Generally, under most tax treaties entered into by India, capital gains arising from the sale of immovable property situated in India are taxable in India, irrespective of the seller's country of residence. However, the country of residence may also tax the same gain under its domestic law. In such cases, relief from double taxation is generally available through the applicable DTAA by way of a Foreign Tax Credit.
A taxpayer residing in the United States sells an apartment in India.
Proper planning before the sale can significantly reduce overall tax exposure.
Dividend income is commonly earned by NRIs and overseas investors from Indian listed companies, private companies, mutual fund investments (where applicable), and global investment portfolios.
The taxation of dividend income depends upon:
Many Indian tax treaties prescribe reduced withholding tax rates on dividend income.
| Country | Indicative Treaty Rate* |
|---|---|
| United States | 15% |
| United Kingdom | 10% |
| Canada | 15% |
| Singapore | 10% |
| UAE | Treaty specific |
* Actual tax treatment depends on the relevant treaty article, beneficial ownership conditions, and applicable domestic law.
Proper treaty planning helps avoid excessive withholding taxes and improves post-tax investment returns.
Interest income is one of the most frequently misunderstood categories under international tax treaties.
Depending on the source of income and the relevant treaty provisions, reduced withholding tax rates may be available.
The applicable treaty may prescribe a maximum withholding tax rate subject to treaty conditions.
Royalty and Fees for Technical Services (FTS) are among the most litigated areas under international tax treaties.
Incorrect characterisation of payments may significantly affect withholding tax obligations and tax liability.
Royalty generally refers to consideration received for the use of intellectual property or similar rights, including:
The exact definition varies between treaties.
FTS generally refers to consideration received for technical, consultancy, or managerial services.
The tax treatment depends on:
Several Indian tax treaties, particularly the India-USA DTAA and India-UK DTAA, contain the Make Available Clause.
Under this concept, technical services may be taxable only where the service provider makes available technical knowledge, experience, know-how, or skills enabling the recipient to independently apply the technology in the future.
This clause frequently affects taxation of:
| Country | Make Available Clause |
|---|---|
| USA | Yes |
| UK | Yes |
| Canada | Limited application |
| Singapore | Treaty specific |
| UAE | Treaty specific |
Our advisory includes:
Business profits are generally taxable in India only where the foreign enterprise has a Permanent Establishment (PE) in India, subject to the relevant treaty.
Whether a PE exists depends on:
Incorrect PE analysis can lead to significant tax exposure.
Permanent Establishment is one of the most important concepts in international taxation.
A foreign company generally becomes taxable in India only if it has a PE in India, subject to the relevant treaty.
Examples include:
Service PE may arise where employees or personnel provide services in India beyond the prescribed duration under the treaty.
An Agency PE may arise where a dependent agent habitually concludes contracts on behalf of the foreign enterprise.
Construction projects exceeding the prescribed treaty duration may create a PE.
To claim treaty benefits successfully, taxpayers should maintain appropriate documentation supporting their eligibility.
Typical documents include:
Maintaining complete documentation reduces the risk of treaty denial and supports smoother tax assessments.
A Tax Residency Certificate (TRC) alone may not always be sufficient to claim benefits under India's Double Taxation Avoidance Agreements. Where prescribed information is not fully contained in the TRC, eligible non-residents are generally required to furnish Form 10F to claim treaty benefits in India.
Under the Income-tax Act, 1961, this requirement is fulfilled through Form 10F. Under the Income-tax Act, 2025, the corresponding compliance has been renumbered as Form 41, while continuing to serve the same purpose of enabling eligible taxpayers to claim benefits under the applicable Double Taxation Avoidance Agreement (DTAA).
The form is generally filed electronically through the Income Tax Portal, subject to the applicable legal requirements and procedural guidelines.
Timely filing of Form 10F (Form 41 under the Income-tax Act, 2025) helps support claims for reduced withholding tax under the applicable DTAA and minimizes the risk of denial of treaty benefits due to procedural non-compliance.
| Income-tax Act, 1961 | Income-tax Act, 2025 | Purpose |
|---|---|---|
| Form 10F | Form 41 | Furnishing prescribed information to claim benefits under a Double Taxation Avoidance Agreement (DTAA) where the Tax Residency Certificate (TRC) does not contain all the required particulars. |
A Tax Residency Certificate (TRC) is issued by the tax authorities of the country where the taxpayer is regarded as a tax resident.
The TRC serves as one of the key documents required to claim benefits under India's Double Taxation Avoidance Agreements (DTAAs).
Where income is taxable in both India and another country, taxpayers may generally be able to claim relief through a Foreign Tax Credit, subject to the domestic law and the applicable DTAA.
Foreign Tax Credits are particularly relevant for:
Our Foreign Tax Credit advisory includes:
Proper planning ensures taxes paid overseas are utilised efficiently and helps minimise the overall global tax burden.
Applying the provisions of a Double Taxation Avoidance Agreement (DTAA) involves much more than identifying the applicable treaty. Proper treaty planning requires analysing tax residency, the nature of income, treaty provisions, domestic tax laws, withholding tax obligations, documentation, and reporting requirements in both jurisdictions.
At Dinesh Aarjav & Associates, we provide end-to-end DTAA advisory services for NRIs, OCI Card Holders, expatriates, multinational corporations, foreign investors, startups, high-net-worth individuals, and globally mobile professionals. Our objective is to minimise double taxation while ensuring full compliance with Indian and international tax laws.
Our DTAA advisory services include:
India has entered into tax treaties with more than 90 countries, but every treaty is unique. The definition of tax residency, Permanent Establishment, royalty, Fees for Technical Services, capital gains, dividends, interest, and Foreign Tax Credits differs from treaty to treaty.
Our specialists provide country-specific advisory for individuals and businesses with international income and investments.
One of the most comprehensive treaties, covering:
Ideal for:
Our advisory covers:
Services include:
Our UAE advisory includes:
Common areas include:
We advise on:
Advisory includes:
International tax planning requires much more than reading a tax treaty. It requires practical experience in applying treaty provisions alongside domestic tax laws, FEMA regulations, withholding tax provisions, foreign tax credit rules, and cross-border structuring.
At Dinesh Aarjav & Associates, we provide integrated advisory that combines Indian tax expertise with global tax knowledge, helping clients manage international tax obligations efficiently.
A person who is not a resident of India is considered to be a Non-Resident of India (NRI). You are a resident if your stay in India in a given financial year for : 182 days or more 60 days or more and 365 days or more in the 4 immediately preceding previous years. In case you do not satisfy either of the above conditions, you will be considered an NRI.
An NRI, like any other individual taxpayer, must file his return of income in India if his gross total income received in India exceeds Rs 2.5 lakh for any given financial year. Further, the due date for filing a return for an NRI is also 31 July of the assessment year or extended by the government.
An NRI’s income taxes in India will depend upon his residential status for the year as per the income tax rules mentioned above. If your status is ‘resident’, your global income is taxable in India. If your status is ‘NRI,’ your income earned or accrued in India is taxable in India. 1. Salary received in India or salary for service provided in India, income from a house property situated in India, capital gains on transfer of asset situated in India, income from fixed deposits or interest on a savings bank account are all examples of income earned or accrued in India. These incomes are taxable for an NRI. 2. Income which is earned outside India is not taxable in India. 3. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO accounts is taxable in the hands of an NRI.
No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.
In case of resident individuals and companies, their global income is taxable in India. However non-residents have to pay tax only on the income earned in India or from a source/activity in India.
Yes, if an NRI’s tax liability is expected to exceed Rs. 10,000 in a financial year, he must pay advance tax. Interest under Section 234B and Section 234C will be levied if advance tax is not paid.
It is also good to check whether the country of migration has a DTAA (Double Tax Avoidance Agreement) with India. There are many countries with which India has a tie-up to ensure there is no double taxation on income earned in one country and taxes are paid in both countries. This is to ensure that taxes are not paid twice.
The dividend income earned by a non – resident individual from an Indian Company is taxable in India as per recent amendment in the Act as passed by Indian Parliament in the month of February, 2020. However, rate of taxation of such dividend income will be as per the rate mentioned in DTAA Agreement or tax rates as provided in the Income Tax Act, 1961 whichever is beneficial to the assesse. Generally, the rate of taxation for NRI varies from 5-10% on dividend income.
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With over 21 years of experience, Mr. Abhishek Batra specializes in NRI taxation and cross-border corporate tax strategies. His expertise spans tax planning, compliance advisory, and financial structuring, helping individuals and businesses navigate complex international tax regulations.
Based in Canada, Mr. Batra offers tailored solutions to NRIs, expatriates, and global companies with operations in India. A Chartered Accountant, CPA, and SRCC graduate, he is known for delivering impactful financial strategies that support growth and compliance.
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An Experienced Chartered Accountant with over 5 years of expertise in cross-border taxation, NRI taxation, and US tax compliances. She has extensive exposure in handling complex international tax matters, including India-US taxation, DTAA advisory, foreign disclosures, expatriate taxation, and tax planning for NRIs and returning Indians.
She is a Chartered Accountant and a Commerce Graduate, with strong proficiency in US tax filings and global tax advisory services.
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