Benefits of DTAA for the NRIs
DTAA is Double Tax Avoidance Agreement. DTAA is an agreement between two countries to avoid double taxation. It is globally known as a tax treaty. The term DTAA is a popular term known to most of the NRI’s. Most of the NRI have dual income which they earn in a foreign country as well as in India. In such cases, it is possible that income earned in one country would attract tax in another country also. This is called double taxation. E.g If you are moving abroad by keeping your income source in India such as fixed deposit, saving bank account etc. Taxes are applicable to these sources in India as well as the country of your residence. This is called double taxation. To avoid double taxation and to make the country attractive destination a concept of double tax avoidance agreement is developed.
