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How does a DTAA work?
We've heard this so many times - "India and XYZ country have a DTAA. So I don't need to pay tax on this income right?"
A THREAD
We've heard this so many times - "India and XYZ country have a DTAA. So I don't need to pay tax on this income right?"
A THREAD
Before we start, let's clear one thing up - A Double Taxation Avoidance Agreement (DTAA) is NOT a magic wand that makes your tax liability go away.
Now that we have this out of the way, let's tackle the beast that is the Double Taxation Avoidance Agreement.
Now that we have this out of the way, let's tackle the beast that is the Double Taxation Avoidance Agreement.
We're going to use the India-US DTAA as an example here. DTAAs tend to have similar treatment overall (but obviously, if you ask a CA, we see a million differences between DTAAs with different countries).
