HOW CAN AN NRI AVAIL BENEFITS UNDER DTAA?
NRIs (Non-Residential Indians) can avail tax benefits under the DTAA (Double Tax Avoidance Agreement). In most of the cases, NRIs live abroad but also earn an income in India. In these cases, they have dual source of income and there is a high probability that they will have to pay taxes on the income earned in India, both in India as well the NRI’s resident country. This will lead to twice the payment of tax on the same income. However, this can be avoided under the Double Tax Avoidance Agreement (DTAA). This benefits the NRIs. The Double Tax Avoidance Agreement is a pact which is signed by two countries. The agreement comes with two major benefits. The signing of the treaty makes one of the countries an attractive tourist destination and the NRIs are exempted from having to pay taxes multiple times. With the help of DTAA, the NRIs do not completely avoid tax; rather they avoid paying higher taxes in both the taxes. The Double Tax Avoidance Agreement benefits the NRIs to cut