India and the United Arab Emirates on Monday signed agreements amending the double taxation convention, which will pave the way for an increased exchange of tax-related information. Under India`s Income Tax Act 1961, there are two provisions, Section 90 and Section 91, which provide taxpayers with a special facility to protect them from double taxation. The double taxation convention is a convention signed by two countries. The agreement is signed to make a country an attractive tourist destination and allow NGOs to get rid of the multiple payment of taxes. The DTAA does not mean that NRA can avoid taxes altogether, but it does mean that NRA can avoid higher taxes in both countries. DTAA allows an NRA to reduce its tax impact on income generated in India. DTAA also reduces cases of tax evasion. According to Article 1 of the DBAA, the benefit of a DBAA agreement applies to only one inhabitant “The modified DBAA allows for the exchange of information on tax matters,” M.K. Lokesh, India`s ambassador to the UAE, told Gulf News. The amendment of the Double Taxation Convention has updated the article on the exchange of information to bring it into line with internationally recognised standards.
INIs can avoid the payment of double taxation under the Double Tax Avoidance Agreement (DBAA). Normally, non-resident Indians (NRIs) live abroad, but earn income in India. In such cases, it is possible that the income received in India may be taxed both in India and in the country of residence of the NRA. This means that they would have to pay two taxes on the same income. To avoid this, the Double Taxation Convention (DBA) has been amended. “This agreement aims to increase capital inflows, as the global slowdown induced by the eurozone crisis has led investors to withdraw money from Indian equities,” said Pradeep Unni, senior relationship manager at Richcomm Global Services DMCC. In accordance with Article 1 of the DBAA, the benefit of a DBAA agreement applies only to one resident. Therefore, a non-resident cannot invoke a remedy under sections 90, 90A and 91. Therefore, a non-resident should not complete the FSI calendars and TR. Schedule FA does not apply to non-residents. It must be filed by residents in India who have foreign assets abroad.
Abu Dhabi: An amended double taxation agreement (DBAA) between the UAE and India is expected to fill loopholes in a previous agreement that allowed Indian tax authorities to sometimes take unnecessary action against businessmen and non-resident individuals for alleged tax evasion, experts say. THE INIs can avoid the payment of double taxation under the double taxation convention. Archit Gupta is the founder and CEO of ClearTax. Questions and views on email@example.com “Facilitating the purchase of Indian shares by investors from all over the world could be a way to close the [tax] gap and DTAA will lead to an increase in investment flows,” he added. For a person residing in India for income tax reasons, all income received or received in India and outside India is taxable in India. . . .