Hey friend,
There are many parts of Income Tax. Keeping a track of all the arts, the terms and the emanating often get too much for a person. To help you out, I will share with you the meaning of what is DTAA. It will especially be useful if you earn your income from multiple countries. Keep reading to know more.
What is DTAA in income tax?The full form of DTAA is Double Taxation Avoidance Agreement. To put it in simple words, it is a tax treaty signed between the Government of India and another country or multiple countries. This is done to help registered taxpayers avoid paying double taxes on their income earned from the source country as well as the residence country.
First of all, one needs to check whether the other country has DTAA with India or not. Then, one needs to file Form no 10 and provide documents like Self-declaration cum indemnity format, Tax Residency Certificate, and Self-attested PAN Card copy.
Now that you know what is DTAA, you should know its details. It is applicable for people who stay in one country and earn income in another nation. DTAA can be comprehensive, encapsulating all income sources, or limited to certain areas, like shipping, inheritance, air transport, etc.
The taxes are calculated in accordance with Section 90 :Tax payable in India 100000*30% = INR 30,000/-
The lower tax rate between 30% and 20% is 20%.
Relief shall be > 100000*20% = INR 20,000/-
A specific rate of tax is set by the government. This is all from my end on what is DTAA in income tax.
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What is DTAA in income tax ?
Yashi
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2022-03-29T21:39:25+00:00 2022-03-29T21:39:27+00:00Comment
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