Government has notified the revised tax treaty with which country under which India will impose capital gains tax on investments routed through the island nation from April 1 next year in a bid to curb tax evasion.

2016

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Italy
B	US
C	Argentina
D	Mauritius

Explanation:

Detailed explanation-1: -The protocol amending the agreement between India and Mauritius, signed on August 24, 1982 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment, was signed at Mauritius on May 10, 2016.

Detailed explanation-2: -(i) DTAA is tax treaty to be signed between 2 countries to help the taxpayer in avoiding double taxation on same income in 2 countries like India + USA (both).

Detailed explanation-3: -India Double Taxation Treaty In case the country in which the person is a resident has not signed a DTAA agreement with India, then Section 91 of the Income Tax Act is used to provide relief from double taxation. Thus, India provides double taxation avoidance relief for both kinds of taxpayers.

Detailed explanation-4: -The DTAA between India and Singapore is a tax treaty that avoids the double taxation of income between Singapore and India and reduces the overall tax burden of the residents of both countries.

There is 1 question to complete.