Double Taxation Avoidance Agreement in Hindi PDF: All You Need to Know
Double taxation has been a critical issue for businesses, entrepreneurs, and investors for years. In this day and age, when the world has become a global village, it is essential to have a comprehensive solution to avoid double taxation. This is where Double Taxation Avoidance Agreement (DTAA) comes in. If you are searching for DTAA in Hindi PDF, you have come to the right place.
What is a Double Taxation Avoidance Agreement (DTAA)?
DTAA is an agreement signed between two countries to avoid taxing the same income twice. It aims to provide relief to taxpayers who are liable to pay tax in more than one country. The agreement ensures that the same income is not subject to tax in two countries.
For instance, if you are a resident of India but have income in the US, you may have to pay taxes in both countries. However, if there is a DTAA in place between India and the US, you will be entitled to relief on the tax paid in the US against the tax payable in India.
DTAA ensures that tax is not a barrier to cross-border trade and investment. It encourages foreign investments by minimizing the tax burden on them.
What is the need for Double Taxation Avoidance Agreement?
The need for a DTAA arises because of the following reasons:
1. Cross-border trade and investment – As the world becomes more globalized, people tend to invest in foreign markets. However, they have to pay tax in both countries, which leads to double taxation.
2. Competitive edge – Countries want to attract foreign investors by offering a lower tax rate on income generated within their borders. However, if there is no DTAA in place, the investors have to pay tax in both countries, which makes it less attractive.
3. Compliance – It becomes difficult for taxpayers to comply with tax laws of different countries. This results in higher compliance costs and creates a burden for the taxpayers.
How does Double Taxation Avoidance Agreement work?
DTAA works on the principle of residence and source. If a person is a resident of one country but has income in another country, the agreement ensures that tax is paid only in the country of residence or the source country, whichever is higher.
For example, if a resident of India has income from the US, the US will withhold the tax at source. However, if there is a DTAA in place, the resident of India can claim relief on the tax paid in the US against the tax payable in India.
DTAA eliminates double taxation by providing relief on income that is taxed in both countries. It also provides for the exchange of information between the two countries to prevent tax evasion.
Where can you find Double Taxation Avoidance Agreement in Hindi PDF?
DTAA is country-specific and is signed between two countries. You can find the DTAA in Hindi PDF on the websites of respective governments. Moreover, you can also find it on the websites of tax departments and embassies of respective countries.
In conclusion, DTAA is an essential agreement that aims to avoid double taxation. It provides relief to taxpayers by ensuring that the same income is not subject to tax in two countries. DTAA works on the principle of residence and source, and it eliminates double taxation by providing relief on income that is taxed in both countries. If you are searching for the DTAA in Hindi PDF, you can find it on the websites of respective governments or tax departments.