List of countries with whom India has Double Taxation Avoidance Agreement (DTAA)

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    India has Double Taxation Avoidance Agreement (DTAA) with 88 countries, but presently 85 has been in force. The DTAA treaty has been signed in order to avoid double taxation on the same declared asset in two different countries.

    How DTAA works?
     

    How DTAA works?

    The DTAA applies for those individuals wherein an individual will reside as a taxpayer in one country and earns income in another country. These DTAA's can either cover all sources of income or can be limited to certain specific areas of income which includes income earned from air transportation, shipping, inheritance and so on.

    These DTAAs are made to make a country attractive for investment purpose by providing relief on dual taxation. The relief is provided by exempting income earned overseas from tax in the resident country or by providing credit to the extent wherein taxes have already been paid abroad. In some of the cases, DTAAs are known to provide concession on tax rates.

    For example, if a person is working in the US for more than 181 days then he becomes an NRI. He will be unable to handle any domestic saving deposit account in India.

    So, he has to convert his savings account to an NRO savings account where he can put his money. It will also allow him to make transactions of funds originating in India such as rents, dividends, pensions etc.

    However, tax deducted at source on interest income earned in NRO account is 30.9 per cent, so much of your returns will be gone paying taxes.

    In order to avoid paying 30.9 per cent as taxes you need to fill the DTAA. You will be able to avail TDS of 10 per cent if you live in any of the following country and you fill the DTAA form. Read: What is DTAA here?

    List of countries with whom India has singed DTAA are :

    List of countries with whom India has singed DTAA are :

    1. Armenia

    2. Australia

    3. Austria

    4. Bangladesh

    5. Belarus

    6. Belgium

    7. Botswana

    8. Brazil

    9. Bulgaria

    10. Canada

    11. China

    12. Cyprus

    13. Czech Republic

    14. Denmark

    15. Egypt

    16. Estonia

    17. Ethiopia

    18. Finland

    19. France

    20. Georgia

    21. Germany

    22. Greece

    23. Hashemite kingdom of Jordan

    24. Hungary

    25. Iceland

    26. Indonesia

    27. Ireland

    28. Israel

    29. Italy

    30. Japan

    31. Kazakastan

    32. Kenya

    33. Korea

    34. Kuwait

    35. Kyrgyz Republic

    36. Libya

    37. Lithuania

    38. Luxembourg

    39. Malaysia

    40. Malta

    41. Mauritius

    42. Mongolia

    43. Montenegro

    44. Morocco

    45. Mozambique

    46. Myanmar

    47. Namibia

    48. Nepal

    49. Netherlands

    50. New Zealand

    51. Norway

    52. Oman

    53. Philippines

    54. Poland

    55. Portuguese Republic

    56. Qatar

    57. Romania

    58. Russia

    59. Saudi Arabia

    60. Serbia

    61. Singapore

    62. Slovenia

    63. South Africa

    64. Spain

    65. Sri Lanka

    66. Sudan

    67. Sweden

    68. Swiss Confederation

    69. Syrian Arab Republic

    70. Tajikistan

    71. Tanzania

    72. Thailand

    73. Trinidad and Tobago

    74. Turkey

    75. Turkemistan

    76. UAE

    77. UAR (Egypt)

    78. UGANDA

    79. UK

    80. Ukraine

    81. United Mexican States

    82. USA

    83. Uzbekistan

    84. Vietnam

    85. Zambia

     

     

    Procedure to claim tax benefit under DTAA
     

    Procedure to claim tax benefit under DTAA

    If you have an NRO account then you must fill in the DTAA form to avoid TDS of 30.9 per cent. You can check from the list given here whether the country in which you are residing in as NRI has signed a DTAA with India.

    If TDS has been deducted, you can claim the money by filing your tax return. Otherwise, you will lose the amount of money where tax has been deducted.

    Why you should know the list of DTAA countries?

    Why you should know the list of DTAA countries?

    You should know the list of DTAA countries, simply because, you can avoid paying taxes twice. What the agreements basically says that is your paying tax already once and hence, you should not be taxed again.
    Especially, if you are an NRI and employed in a country like the United States, you can save on taxes.

    You would need to submit an application at the nearest bank.

    You would need to submit an application at the nearest bank.

    You would need to submit an application at the nearest bank.

    Remember, the list of DTAA countries will keep changing, based on the agreements that are altered frequently. We suggest you check with your bank for all the other details.

    Please note that the list of countries with whom we have a DTAA keeps changing depending on the government's policies that keep changing from time to time. Hence, you need to examine the new list every time, to see if any changes have been made or affected. We suggest that you take a look at the list on a regular basis. In fact, India is now examining its DTAA agreements with many countries and these could soon undergo a change.

    What to do to implement the DTAA?

    What to do to implement the DTAA?

    Now, let us assume that have a TDS, that is being deducted at 30.6 per cent on your NRO deposits. You need to apply to your bank and submit a range of documents like a valid visa, bank statement in the country of your residence, etc. Thereafter, if there is a DTAA agreement with the country of your residence, tax would be implemented only at the rate of 10 per cent.

    Read more about: dtaa double taxation
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