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DTAA DTAA

Double Taxation Avoidance Agreement Consultancy

Expert Double Taxation Avoidance Agreement (DTAA) Services for NRIs, OCIs, Foreign Nationals & Indian Residents

 

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.

 

What is DTAA (Double Taxation Avoidance Agreement)?

 

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.

Double Taxation Avoidance Agreement Consultancy

Why You Need DTAA in India – Key Benefits

Here’s how DTAA helps:

 

 

Types of Income Covered Under DTAA

 

DTAA relief is applicable on various types of income for NRIs and global investors:

 

  • How DTAA Works in India

     

    DTAA allows relief from double taxation through:

     

    1. Exemption Method: Income taxed only in one country (source or residence)

    2. Tax Credit Method: Taxed in both countries, but credit is given in the residence country

    3. Reduced Tax Rate: Many treaties offer lower TDS rates on interest, dividends, royalties, etc.

     

    Documents Required to Claim DTAA Benefits in India

     

    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

     

    Who Can Claim DTAA Benefits?

     

    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

     

    Our DTAA Advisory Services – End-to-End Support

     

    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

Frequently
Asked Questions

  • Q: When are you considered as a Non-Resident Indian (NRI)?

    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.

  • Q: When should an NRI file his return of income in India?

    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.

  • Q: Is my income earned abroad taxable in India ?

    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.

  • Q: Is Income tax Act applicable only to residents?

    No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.

  • Q: How is resident/ non-resident status relevant for levy of Income Tax?

    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.

  • Q: Does an NRI also have to pay advance tax?

    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.

  • Q: I am planning to move out of India. Is DTAA relevant for me ?

    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.

  • Q: Whether dividend income earned by a non – resident individual from an Indian Company is taxable?

    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.