What are the Advantages of Double Taxation Treaties?

KS Posted by: Karan Singh
• 28 October, 2025
2 Reply

Here are some of the major advantages of the double taxation treaties for Indian residents, which help them manage international investments and incomes. 

  • DTAA provides tax exemptions for people who are involved in businesses or trades. 
  • You can get a tax credit on the taxes that you have paid in the country. 
  • DTAA provides legal certainty with clear guidelines on international tax income. It also helps the developing country to look for more foreign investments.
  • Double taxation treaties also help to reduce the tax deduction at source on the dividends that you earn in India, which results in various savings. 
  • It also helps to get the tax refund opportunities if one company pays the taxes of another country and gets the tax refund from the origin country, which results in providing financial relief. 

Tags : Advantages of Double Taxation

  • Tanya Kapoor 03 November, 2025

    Here are some of the DTAA benefits that I have used: 

    • It helps individuals and businesses to avoid paying double taxes in different countries on the same income that they have earned. 
    • It promotes cross-border investments, which helps to reduce the tax burdens and stimulate more employment opportunities, economic growth, and the country's infrastructure. 
    • DTAA also helps avoid double taxation on capital gains, which provides many benefits to the investors. 
    • Provides high enhanced transparency, which helps to counter tax evasion with a more equal and simple taxation system. 

     

  • Gaurav Chatterjee 31 October, 2025

    Here are some of the documents provided below, which will help you take advantage of the DTAA benefits. 

    • You need to provide your tax status by submitting a tax residency certificate. 
    • A self-declaration form. 
    • A valid copy of your PAN Card. 
    • A copy of the visa as proof of your residency status. 
    • You must submit proof of your Indian origin if applicable. 
    • A self-attested copy of your valid passport, which should be valid for at least 6 months. 
    • To claim the tax benefits, you need to submit the TRC to the tax deductor. 

     

Join The Discussion

Share Your Thoughts and Connect with Others.

Releated Topics

  • What is Foreign Tax Credit?

    A foreign tax credit allows residents to pay the tax on their foreign income in another country to lower their tax liability in India.  The main purpose of the foreign...

    • 8 Reply
    • 53 Views

  • Why are Form 15CA and 15CB Required?

    A Form 15CA is a declaration that is used to collect the information which is related to the payments that are chargeable to tax with Non-residents. It is a useful...

    • 6 Reply
    • 47 Views

  • What are the Income Tax Deductions for NRIs in India?

    Here are the deductions under the Income Tax for the NRIs.  For the NRIs, most of the deductions fell under Section 80. A maximum deduction under section 80C is up...

    • 2 Reply
    • 39 Views

  • What are the Best Way for the NRIs to Send Money to India?

    Here are some of the best ways for the NRIs to send money to India.  Wire Transfer: A Non-resident of India (NRI) can transfer their money from foreign or their...

    • 3 Reply
    • 40 Views

  • What is Fund Repatriation?

    NRI funds repatriation means the transfer of funds from the NRI bank account to an Indian bank account or their residence country bank account. It includes both processes of sending...

    • 6 Reply
    • 54 Views

  • How to Download Form 16?

    To download Form 16 for the salaried, you need to follow the given steps below:  First, you need to visit the official website of the Income Tax Department.  Now, log...

    • 6 Reply
    • 165 Views

  • What is Section 90a of the Income Tax Act?

    Section 90A of the Income Tax Act is applicable between the specific associations of two countries that have signed the Double Taxation Avoidance Agreement (DTAA). This Section allows for a...

    • 4 Reply
    • 177 Views

  • What is Section 91 of the Income Tax Act?

    Section 91 of the Income Tax Act applies to an individual who is eligible to claim the tax relief under a condition if the DTAA is not present between Indian...

    • 4 Reply
    • 121 Views

  • What is Form 16 password?

    The Password for the Form 16 is the first five letters of your PAN and the date of birth in the DD/MM/YYYY format. Taxpayers will get their Form 16 passwords...

    • 6 Reply
    • 157 Views

  • Are There Any Income Tax Deductions Available to NRI?

    Yes, NRIs are imposed with several exemptions and deductions under the Indian Income tax laws. These deductions come under the sections 80C, 80D, 80G, 80TTA, which are easily available to...

    • 5 Reply
    • 178 Views
Popular Categories
confused img
Can’t find an answer?

Let Savetaxs guide you to the perfect solution for all your queries.

comunity img

Join Our Facebook Community of
NRIs/OCIs Like You

Join Community
Join Community