SCN-1 “Tax Treaty”

SCN-1 “Tax Treaty”

Hello Readers,

Starting with the first concept of this series: Tax Treaty

Also known as a Bilateral Agreement,

A tax treaty is a bilateral agreement signed between two nations so as to prevent the issues of double taxation on income. As per this agreement, both the nations decide the rates of tax that has to be applied to an income of a person in both the nations i.e. country of origin of income and the home country. Sometimes, it is in the form of lower tax rates on the same income in both the nations and sometimes it is in the form of tax credit benefit under which one nation (foreign) levy the tax and the home country gives him tax credit of the same so that while assessing his income in the home country, the income on which the tax has already been paid should not be taxed again.

Click Here to see the tax treaties signed by Government of India with the Government of other nations.

 

For Tax Consultancy, Mail us at at info@atulkhurana.com

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