Double Taxation Avoidance Agreement India with Australia

Double Taxation Avoidance Agreement (DTAA) between India and Australia was signed on 28 September 1991. The agreement aims to prevent double taxation of income earned in one country by a resident of the other country.

The agreement provides for the taxation of income of residents of one country only in that country, except in cases where they derive income from sources in the other country. The agreement also provides for the exchange of information between the two countries to prevent tax evasion.

Under the agreement, the income of a resident of Australia that is derived from sources in India is subject to tax in India. Similarly, the income of a resident of India that is derived from sources in Australia is subject to tax in Australia. The agreement also provides for certain exemptions and deductions to avoid double taxation.

The DTAA between India and Australia covers all types of income, including business profits, royalties, dividends, interest, and capital gains. The agreement also covers taxation of income of individuals, companies, partnerships, trusts, and other entities.

The agreement provides for certain provisions to avoid double taxation. For instance, if a business operating in India and Australia is taxed in both countries, the agreement provides for a tax credit in one country for the taxes paid in the other country. The agreement also provides for the resolution of disputes related to the interpretation and application of the agreement.

The DTAA between India and Australia has helped to promote trade and investment between the two countries. The agreement has encouraged businesses to invest in each other`s markets by reducing the tax burden on their income.

In conclusion, the DTAA between India and Australia is an important agreement that helps to avoid double taxation of income earned by residents of both countries. The agreement has provided a favorable tax environment for businesses to invest in each other`s markets and has contributed to the growth of trade and investment between India and Australia.