What is the Meaning of DTAA?

The full form of DTAA is Double Taxation Avoidance Agreement. DTAA is a treaty that is signed between India and other countries. India has signed DTAA with 90+ countries. This agreement is signed to make the country a perfect destination that helps NRIs avoid paying taxes twice. DTAA includes what comes from our business profits, royalties, interest, capital gains, employment, etc.

DTAA doesn't completely avoid taxes, but it helps NRIs to pay lower taxes in different countries.

Benefits of DTAA

There are a total of 3 methods to claim DTAA, which are:

• Exemption: Under this method, you can get tax relief in one of the two countries. 
• Tax credit: Through this method, you can claim in your residence country. 
• Deductions: Taxpayers can claim deductions paid to the foreign government in the residence country. 

Type of Income DTAA is Applicable

Under DTAA, you don't have to pay tax twice on the following income, given below: 

• Any salary income received in India.
• House property located in India.
• Capital gains on transfer of assets. 
• On a savings account in India. 
• FD in India. 
• Any type of services provided in India. 

Documents Required for Claiming DTAA Benefits

You need to submit some documents if you are an NRI and are looking forward to claiming tax benefits in India based on the tax you are paying in a foreign country.

• PIO proof copy to validate that you are of Indian origin
• Passport xerox(self-attested)
• An indemnity or self-declaration form
• Self-attested copy of PAN card 
• Self-attested visa
• Tax Residency Certificate

List of Countries that India Signed DTAA Agreemen

1. United States of America
2. United Kingdom
3. Canada
4. Australia
5. Germany
6. South Africa
7. New Zealand
8. Singapore
9. Mauritius
10. Malaysia
11. UAE
12. Qatar
13. Oman
14. Thailand
15. Sri Lanka
16. Russia
17. Kenya