Indo-US Double Taxation Avoidance Agreement

The Government of India has entered into double taxation avoidance agreements (tax treaties) with several countries with the principal objective of evolving a system for the respective countries to allocate the right to tax different types of income on an equitable basis. Tax treaties serve the purpose of providing full protection to taxpayers against double taxation and also aim at preventing discrimination between the taxpayers in the international field. The NRIs/PIO would, therefore, be well advised to take advantage of such treaties in tax planning for their investments in India. A comparison of the tax rates pursuant to the DTAA is as below:

For full text of the DTAA with USA please click here. *

Tax rates as per IT Act vis a vis Indo-US DTAA *

TDS (Withholding tax) rates under Indo-US DTAA *