The Double Tax Avoidance Agreement (DTAA) between India and Canada is a bilateral tax treaty for eliminating double income taxation in both countries. Individuals and entities earning income in both countries are not required to pay tax twice on the same income. As per the treaty, the dividend income is taxed at 25% in most cases, royalty at 10-20%, and interest at 15%.  DTAA Between India and CanadaAccording to the Indian Canada DTAA, if an Indian resident has taxable capital gains in Canada, India will permit a deduction from the resident's capital gains tax equal to the amount paid in Canada. This agreement covers different types of income, such as business profits, royalties, capital gains, dividends, and others.

The Double Tax Avoidance Agreement (DTAA) between India and China aims to help taxpayers avoid paying taxes twice in both countries. The treaty now covers income tax levied by People's republic of China on individuals and enterprises, income tax levied in India, and sharing of financial information between the two countries.DTAA Between India and ChinaThe agreement between the Government of the People's Republic of China and the Government of the Republic of India to avoid double taxes and prevent fiscal evasion of income taxes was signed on July 18, 1994, and came into force on November 21, 1994, in New Delhi. However, the treaty was amended between the two nations through a protocol signed on November 26, 2018. The amendment changed the existing provision related to information exchange and adhered to all international standards. The tax benefits will allow businesses to invest more money in foreign firms and achieve commercial growth.Taxes Covered Under DTAAAs per Article 2 of India China DTAA, the taxes covered under the treaty are as follows:It regards taxes on income, tax on total income or elements of income as well as that which includes gaining taxes from alienating immovable or movable property and capital appreciation taxes.DTAA agreement will apply to taxes that are as follows:China (or "Chinese Tax"):Enterprise Income Tax Individual Income TaxIndia (or "Indian Tax"):Income tax including surcharges Important Points:This treaty applies to taxes on earnings imposed on behalf of the Contracting State, local authorities, or any political subdivision, irrespective of how they are levied.DTAA also applies to any substantially similar or identical taxes, applicable after the signing of the agreement in addition to existing taxes referred to above.The Contracting State will notify any changes to one another in their respective tax laws within a reasonable time after making changes.India - China DTAA Tax RatesDTAA between India and China discusses withholding tax rates on different types of income, such as interest, royalties, technical service fees and many more.

The DTAA between India and Australia prevents the residents of both countries, including NRIs, from being taxed twice on the same income, with tax paid in one country as a credit in the other. DTAA covers personal and corporate income under bilateral relief methods like deductions, credits, and exemptions; the agreement caps rates at 15% on dividends, interest, and royalties and mentions clear rules for capital gains and income for capital gains and income from immovable property. As per the amendment in 2022, the DTAA further extended relief to Indian professionals earning from offshore services to Australian clients, making the DTAA a key part of India’s broader network of tax treaties with approximately 100 countries, What is DTAA Between India and Australia?DTAA between Australia and India is an agreement to counter the double taxation issue. Australia signed this agreement on the 30th day of December 1991. The articles under this agreement apply to all types of personal and corporate income sources. Different types of taxes and interest rates are mentioned in this agreement.

The DTAA between Switzerland and India prevents residents of both countries from being taxed twice on the same income, with tax paid in any one of the countries claimed as credit in the other. The DTAA caps TDS at 10% on dividends, royalties, interest and technical services fees, while laying out clear rules for taxing capital gains from immovable property, business assets and shares. DTAA offers legal certainty and lower withholding tax, the agreement encourages cross-border investment and reduced tax evasion.TDS is the part of income withheld when a non-resident get payment, at rate which is agreed on both countries. As per the India-Switzerland DTAA, TDS is capped at 10% of gross income across the board for dividends, interest, royalties or even technical services fees.What is DTAA Between India and Switzerland?The DTAA, or Double Tax Avoidance Agreement, between India and Switzerland, was signed on 21st April 1995 and amended on 7th February 2001 and 27th December 2011. This step was taken to avoid double taxation on the same income. This agreement has 29 Articles.

The DTAA between India and the UAE prevents both countries from being taxed twice on the same income, with tax paid in one country claimed as a credit in the other. This agreement covers income like interest, salaries, dividends and royalties, and technical fees are taxed at a reduced 10% and interest at 5% (12%) in other cases. With cross-border trade between the UAE and India and exceeding $20 billion, the DTAA plays an essential role in encouraging investment and preventing unfair taxation for individuals and business operating. DTAA Between India and UAEUAE and India signed the tax treaty which came into force on 22nd September 1993 to save double taxation by two countries on the same income. Personal income tax does not exist in Dubai, while other emirates in the UAE have passed tax decrees that include revenue taxes.Furthermore, corporations need to pay corporate tax. The DTAA treaty prevents corporations from paying income tax, wealth tax, and surtax twice, especially if they are already taxed in India.Residents with a permanent establishment in either India or the UAE are given the same tax treatment in India.Both States need to notify one another of any significant changes to their tax systems as per the India UAE DTAA.This agreement promotes fair taxation for all parties concerned and encourages investment and commerce between the two countries.As a result, businesses and individuals can undertake operations in both nations without fear of being subjected to double taxes.Taxes Covered Under DTAAArticle 2 of the DTAA between India and UAE covers the section on taxes.

An income of a resident Indian or an NRI classified as non-resident income can be taxed in two different countries, due to an assessee being resident in one country and the oncome arising in another. This is called double taxation, and many countries have signed DTAA agreement to eliminate double taxation of income. In India, double taxation relief can be claimed using tax exemption and tax credit method. What is a Foreign Tax Credit?Tax is charged by countries based on two rules:Source Rule: Income is taxed in the country where it is earned, regardless of who earns it.Residence Rule: The right to tax is vested in the country in which the assessee is a resident.So, there may be situations where one country charges tax on an income based on source rule, whereas another country charges tax based on residence rule. This results in the same income being taxed twice, popularly called as double taxation. However, if you have paid taxes in a country, you can claim a credit for the tax paid in your home country.

TDS deduction against capital gains transactions is an NRI specific requirement. The provisions are governed under section 393 of the Income Tax Act 2025. It is treated as short term or long term capital gains based on period of holding. TDS is deducted at 12.5% on long term and 30% on short term capital gains.Key HighlightsCapital gains tax is attracted when an NRI sells an immovable property.TDS should be deducted on capital gains12.5% - Long term capital gains30% - Short term capital gainsCapital gain exemptions available under section 54 series.How are Gains from the Sale of Property in India Taxed for NRIs?Whenever an NRI sells property in India, the profit is taxed as capital gains. The nature of gain depends on the holding period of the property: LTCG: When a property is sold after holding it for more than two years from date of purchase, the gains will be treated as LTCG. STCG: Where a property is sold within two years from date of purchase - the gains will be treated as STCG.Tax Rates for NRIs on Property SaleThe following table explains the long term and short term capital gain tax rates for NRIs.Type of capital gainHolding periodTax rateSTCG (Short-Term Capital Gains)Property held up to 2 years (24 months)Applicable slab ratesLTCG (Long-Term Capital Gains)Property held for more than 2 years (24 months)12.5% without indexationTDS on Sale of Property by NRIWhen an NRI sells property in India, the buyer is responsible for deducting TDS before making payment.If property sold within 2 years (STCG): TDS at 30% on the sale consideration.If property is sold after 2 years (LTCG): TDS at 20% (plus surcharge and cess).Unlike resident sellers (where TDS is only 1% under Section 194-IA), TDS on sale of property by NRI is much higher because it is deducted on the capital gains tax liability.

Surcharge is an additional tax calculated as a percentage of income tax payable. Usually, high income taxpayers are subjected to surcharge provisions under the Income Tax Act. For individuals, surcharge rates are as follows: 10% for income between 50 lakhs and 1 crore, 15% for income between 1 crore to 2 crore, 25% for income between 2 crore to 5 crore, and 37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)Surcharge on Income TaxIncome tax surcharge is an additional charge payable on income tax. It is an added tax on the taxpayers having a higher income inflow during a particular financial year.Surcharge Rates for Individuals Under the Old Regime and New RegimeNet Taxable Income limitSurcharge Rate on the amount of income tax (under old tax regime)Surcharge Rate on the amount of income tax (under new tax regime)Less than Rs 50 lakhsNilNilMore than Rs 50 lakhs ≤  Rs 1 Crore10%10%More than Rs 1 Crore ≤  Rs 2 Crore15%15%More than Rs 2 Crore ≤  Rs 5 Crore25%25%More than Rs 5 Crore37%25%Note:Surcharge for AOPs having only companies as its members to 15%. It is applicable to AOPs whose total income during the financial year exceeds Rs 1 crores. Surcharge on Capital GainsSurcharge has been capped at 15% on dividend income and Capital gains covered under section 111A, 112 and 112A.IllustrationLets understand this concept through an example:Mr. A has earned the following income during the financial year 2025-26:Business Income : Rs.

Dearness Allowance is a part of an employee’s salary, paid to public sector and government employees. It is introduced to cushion the impact of inflation on their purchasing power. Dearness Allowance is calculated as a percentage of basic pay, with regular revisions (twice a year) in line with the Consumer Price Index. Dearness Allowance is taxable and depends on employees' basic salary and inflation. DA Raised by 2%The Dearness allowance has been increased to 60% from the existing limit of 58% for central government employees as approved by the Union Cabinet. This DA hike will take effect from 1st January, 2026.

Section 194A of the Income Tax Act, 1961 mentions TDS on interest income other than interest on securities by covering payments made by post offices, banks, cooperative societies, individual and companies advances and loans. TDS is deducted at 10% once interest crosses the prescribed threshold, that is Rs.50,000 for most individuals and Rs 1 lakh for senior citizens on bank and post office interest (Rs.10,000 for other payers); the rate increases to 20% if PAN it is not furnished. Eligible taxpayers can avoid this deduction by submitting Form 121, with applicable conditions. Key Highlights Threshold Limit: Rs.50,000 for bank and post office interest. (Rs.1 lakh for senior citizens)TDS Rate: 10% TDS is deducted on interest crossing threshold limit.Form 15G/15H: File form 15G or 15H to avoid TDS deduction on your interest income (applicable in specific cases).What is Section 194A?Section 194A of the Income Tax Act, 1961 mandates the deduction of TDS on interest income other than interest on securities. It applies to payments made by banks, financial institutions, companies, and individuals where interest is credited or paid on deposits, loans, or advances.