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Are you paying tax on the same income in two countries? If you are an NRI (Non-Resident Indian), OCI, foreign citizen, or an Indian resident earning income abroad, you could be facing double taxation on the same income.
This is where the Double Taxation Avoidance Agreement (DTAA) comes in — a tax-saving tool for NRIs, expats, and global investors to avoid or reduce paying tax twice.
A Double Taxation Avoidance Agreement (DTAA) is a tax treaty signed between two countries to eliminate or reduce the burden of double taxation. India has DTAA treaties with more than 90 countries, including:
United States (USA)
United Kingdom (UK)
Canada
Australia
UAE
Singapore
Germany
Mauritius
Netherlands, and many more.
With the DTAA, you may either avoid tax in one country or claim credit for tax paid in the other. This helps you maximize your post-tax income, stay compliant, and repatriate funds smoothly.
Avoid Double Taxation on the same income
Lower TDS on NRO Account Interest, rental income, capital gains, and dividends
Reclaim Tax Paid in India via Tax Credit in your country of residence
Legally Repatriate Money from India Abroad
Stay Compliant with Indian Income Tax and FEMA Laws
Increase Overall Net Income through tax optimization
DTAA relief is applicable on various types of income for NRIs and global investors:
Interest Income (NRO FD, savings, bonds)
Rental Income from Property in India
Capital Gains on real estate, mutual funds, and shares
Salary from Indian company or global job
Dividends from Indian companies
Professional or consultancy fees
Business or freelance income from Indian clients
Royalty & technical fees
Exemption Method: Income taxed only in one country (source or residence)
Tax Credit Method: Taxed in both countries, but credit is given in the residence country
Reduced Tax Rate: Many treaties offer lower TDS rates on interest, dividends, royalties, etc.
To successfully claim DTAA relief and avoid excess TDS or tax in India, you must submit:
Tax Residency Certificate (TRC) from the foreign country
Form 10F with relevant declarations
PAN Card (Mandatory for DTAA in India)
Self-declaration of no Permanent Establishment (PE) in India
Supporting documents: income proofs, NRO statements, remittance advice
Our services are useful for:
NRIs residing in USA, UK, UAE, Canada, Singapore, Australia, etc.
Indian residents with foreign income (job, investments, freelancing)
Foreign citizens earning income from India
Startups and companies with international operations
NRIs selling property in India and repatriating funds abroad
Individuals paying excess TDS on NRO accounts or mutual fund gains
At Dinesh Aarjav & Associates, we offer a comprehensive DTAA Tax Planning and Advisory Package, including:
Consultation on DTAA applicability
Assistance in obtaining TRC and Form 10F
Filing of Form 15CA and 15CB for international remittances
NRI Income Tax Return Filing with DTAA claim
Calculation of Foreign Tax Credit (FTC)
Repatriation planning under FEMA & RBI norms
Advisory on NRO to NRE fund transfers
Documentation for tax refund claims
Response drafting to Income Tax Department notices
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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