Private Client & NRI Advisory
DTAA Advisory
India's tax treaties decide which country taxes what — salary, business profits, dividends, interest, capital gains. We take the treaty position deliberately and document it before it is questioned.
A Double Taxation Avoidance Agreement overrides the domestic law of both countries where it is more favourable to the taxpayer — but relief is never automatic. It is claimed, position by position, and defended with documents: a tax residency certificate from the other country, Form 10F in India, and, for business income, an analysis of whether a permanent establishment exists.
The questions that reach us are practical: a salary taxed in two countries, dividends from Indian shares in the hands of a Gulf or Singapore resident, capital gains on shares where the treaty and the domestic law point different ways, pension income, and remote-work arrangements that quietly create a taxable presence. Each is answered from the specific treaty — India has over ninety, and they do not all say the same thing.
What this covers
- Treaty-by-treaty analysis of salary, business profits, dividends, interest, royalty and capital gains
- Residence tie-breaker positions where both countries claim the client as resident
- Permanent establishment risk for businesses and remote-working arrangements
- Tax residency certificate and Form 10F — obtaining, filing and keeping the file current
- Foreign tax credit in the Indian return (Form 67) where India retains the taxing right
- Treaty positions on share transfers, including grandfathering under the amended treaties
How the engagement runs
01
Facts & treaty
The income, the countries and the client's residence are mapped to the specific treaty articles that govern them.
02
Position in writing
The relief claimed — and the article it rests on — is recorded before any return or deduction relies on it.
03
Documents assembled
TRC, Form 10F and supporting records are collected into one file, refreshed each year the position is taken.
04
Held in the return
The position is disclosed in filing, and any enquiry is answered from the file that was built for it.
Questions clients ask
Does the treaty apply automatically if I live in a treaty country?
No. The more favourable of the treaty and domestic law applies, but the relief must be claimed and supported — a tax residency certificate and Form 10F are the minimum file, and for business profits a permanent-establishment analysis. An unsupported claim is usually where enquiries begin.
I paid tax abroad on income India also taxes. Do I lose it?
Generally not: the treaty gives relief either by exempting the income in one country or by credit in the other. In India the credit is claimed through Form 67 with proof of the foreign tax. The mechanism differs by treaty and income type, which is why the position is settled before filing, not in response to a notice.
Are capital gains on Indian shares protected by treaties?
It depends on the treaty and when the shares were acquired. Some treaties reserve the gain to the residence country; the amended treaties with Mauritius and Singapore grandfather investments made before 1 April 2017 and tax later ones in India. The answer is specific to your treaty and your acquisition dates — there is no safe general rule.
Discuss Your Requirements With CorpCFO
Share the matter in confidence. You will hear back from the practice — not a call centre — with a clear view of the options and the next step.