India has signed Double Taxation Avoidance Agreements (DTAAs) with several countries in order to promote cross-border trade and investment whilst reducing tax obstacles. A DTAA is an arrangement between two nations which promises to avoid double taxation of income earned in both countries by a taxpayer residing in one of the countries. The agreement aims to ensure that the same income is not taxed twice in both nations.
India has signed DTAAs with over 80 countries worldwide, including major trading partners such as the United States, United Kingdom, China, and Japan. Numerous other countries are currently in the process of negotiating DTAAs with India.
Below is a list of countries that have signed DTAAs with India:
1. Australia
2. Austria
3. Bangladesh
4. Belarus
5. Belgium
6. Brazil
7. Bulgaria
8. Canada
9. China
10. Croatia
11. Cyprus
12. Czech Republic
13. Denmark
14. Egypt
15. Estonia
16. Ethiopia
17. Finland
18. France
19. Georgia
20. Germany
21. Greece
22. Hong Kong
23. Hungary
24. Iceland
25. Indonesia
26. Ireland
27. Israel
28. Italy
29. Japan
30. Kazakhstan
31. Kenya
32. Korea (Democratic People`s Republic of)
33. Korea (Republic of)
34. Kuwait
35. Kyrgyzstan
36. Latvia
37. Lithuania
38. Luxembourg
39. Malaysia
40. Malta
41. Mauritius
42. Mexico
43. Mongolia
44. Montenegro
45. Morocco
46. Mozambique
47. Myanmar
48. Namibia
49. Nepal
50. Netherlands
51. New Zealand
52. Norway
53. Oman
54. Pakistan
55. Philippines
56. Poland
57. Portugal
58. Qatar
59. Romania
60. Russia
61. Saudi Arabia
62. Serbia
63. Seychelles
64. Singapore
65. Slovakia
66. Slovenia
67. South Africa
68. Spain
69. Sri Lanka
70. Sudan
71. Sweden
72. Switzerland
73. Syria
74. Taiwan
75. Tanzania
76. Thailand
77. Trinidad and Tobago
78. Tunisia
79. Turkey
80. Turkmenistan
81. Uganda
82. Ukraine
83. United Arab Emirates
84. United Kingdom
85. United States of America
86. Uruguay
87. Uzbekistan
88. Venezuela
89. Vietnam
90. Yemen
91. Zambia
92. Zimbabwe
DTAAs bring a lot of benefits to taxpayers doing business in India. Firstly, they avoid the double taxation of income, which means that the taxpayer is only required to pay tax in one country, where the income is generated. Secondly, the agreements help to eliminate the possibilities of tax evasion and avoidance. Finally, the DTAAs provide for a lower rate of tax, or exemption from tax on certain types of income, such as interest, royalties, and capital gains.
In conclusion, India has signed Double Taxation Avoidance Agreements (DTAAs) with many countries to promote cross-border trade and investment while reducing tax obstacles. The agreements ensure that the same income is not taxed twice in both countries. Taxpayers doing business in India benefit from DTAAs by avoiding double taxation of income, eliminating the possibility of tax evasion and avoidance, and enjoying lower rates of tax or exemptions from tax on certain types of income.