CURRENT AFFAIRS

Detailed explanation-1: -Double Taxation Avoidance Agreements (DTAA) is a treaty signed between two or more countries and is applicable in cases where a taxpayer residing in one country has to earn his/her income from another country.

Detailed explanation-2: -To avoid double taxation of the same income in two different countries, India has entered into DTAA with USA. The government of both countries entered into a DTAA with the intention of providing either of the following: Exemption of income earned outside India.

Detailed explanation-3: -The India-UK Double Taxation Avoidance Convention (DTAC) was signed in 1993 and was effective in India from January 1, 1994. A MoU on the Convention’s arbitration process was signed in 2004. Further, a Protocol to the Convention for taxes to be deducted at source was agreed and signed in 2013.