DTAA - Double Taxation Avoidance Agreement: Definition, Types, and Benefits

Understanding DTAA: DTAA prevents NRIs from being taxed twice on income earned in different countries, encouraging economic growth. Types of DTAA Relief: Bilateral Treaties: Offer exemption or tax credit methods, decided through mutual agreement. Unilateral Relief: Provided by the taxpayer's home country in the absence of bilateral agreement.

Advantages of DTAA: Makes investing abroad attractive, reduces tax evasion, and offers lower withholding tax rates. Claiming DTAA Benefits: NRIs submit TRC, Form 10F, and PAN Number annually to avail tax benefits.

How to Apply for DTAA: Steps involve scope evaluation, tax applicability verification, and treaty validity check. DTAA Relief Calculation: Under section 90, calculate global income, tax on foreign income, and foreign tax paid for relief.

Without DTAA: Relief claimed under section 91 involves calculating Indian tax and comparing tax rates. India's DTAA with Major Countries: Includes the USA, UK, Canada, Australia, Germany, and others, each with specific TDS rates.