DTAA in Income Tax: A Guide to Avoiding Double Taxation

DTAA in Income Tax: A Guide to Avoiding Double Taxation

Blog Article

The Double Taxation Avoidance Agreement (DTAA) in Income Tax is a crucial treaty that prevents individuals and businesses from being taxed twice on the same income in two different countries. It is designed to promote cross-border trade and investment by providing tax relief and reducing financial burdens. DTAA applies to both residents and non-residents earning income in multiple jurisdictions. Understanding its benefits, provisions, and applicability is essential for taxpayers to optimize tax liabilities. In this article, we will explore DTAA’s significance, how it works, and its impact on international taxation.