Double Taxation Avoidance Agreements in India
10 Pages Posted: 5 Mar 2014
Date Written: March 5, 2014
The double taxation avoidance agreement is an agreement which helps the taxpayer to get relief from double taxation on the same income. If India has signed any double taxation agreement with any foreign country; it’s meant that the taxpayer of those countries does not have to pay the tax on the same income in both the countries. So, double taxation avoidance agreement is a useful tool which helps the taxpayer to avoid “double taxation”. In case of claiming relief under double taxation avoidance agreement two important things are needed to find out. These are:
1. The country of residence. 2. The source country.
Here “the country of residence” means where the assessee resides and the source country is any foreign country other than where he resides, but the asseesee earn some income from that foreign state. In that case if the two countries does not sign any DTAA then the assess has to pay tax in both the state i.e. the country of his residence as well as the source country, this is why double taxation avoidance is so much important. In this project I will make a detail study on double taxation avoidance agreement in India. I will divide this project into seven chapters. In first chapter there will be introduction, research objective. In Second chapter I will make a detail study on double taxation avoidance agreement wherein I will discuss the meaning and the concept of double taxation and also the importance of double taxation avoidance agreement. In third chapter there will be a detailed study on the history and background of the double taxation avoidance agreement. In next chapter I will analyse those provisions of income tax act, 1961, which are dealing with double taxation and will try to find out whether it is conflict with double taxation avoidance agreement or not. In 5th chapter I will discuss jurisdictional issue regarding double taxation avoidance. In chapter six, I will make a detail analysis on how double taxation avoidance agreement works in India. In chapter seven I will discuss about the misuse of DTAA where I will analyse double non taxation and treaty shopping. Finally last chapter will be consisted of conclusion and suggestion part.
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