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

By Staff

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)


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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