India-Iran: Cabinet approves Agreement for Avoidance of Double Taxation

The Union Cabinet has approved Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income between India and Iran. The Agreement is on similar lines as entered into by India with other countries.

Key Facts

The agreement will stimulate flow of investment, technology and personnel from India to Iran & vice versa and prevent double taxation. It will provide for exchange of information between two contracting parties as per latest international standards. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance. It also meets treaty related minimum standards under G-20 OECD Base Erosion & Profit Shifting (BEPS) Project, in which India participated on equal footing.

Background

The Central Government is authorized to enter into Agreement with other country or specified territory for avoidance of double taxation of income for exchange of information for prevention of evasion or avoidance of income-tax chargeable under Section 90 of Income Tax Act, 1961

Month: Current Affairs - March, 2018