Double Tax Avoidance Agreements

Double Tax Avoidance Agreements override the Indian Income-tax Act provisions to the extent that they are more beneficial to the Assessee (concessional tax rates applicable under certain double tax avoidance conventions that India has signed with various countries, and India granted the Most Favoured Nation status to Netherlands). Relief is granted in respect of income chargeable to tax, both under the Income-tax Act of India and the Domestic Tax laws in that other country, in order to promote mutual economic relations, trade and investment.