4. Provisions to eliminate double taxation: this is first and foremost section 23. Article 25 (mutual agreement) could also be classified in this category. Double taxation agreements (also known as double taxation agreements or “DBAA”) are negotiated under international law and are governed by the principles of the Hague Convention. 3. prevents international tax evasion and evasion; Double taxation is the collection of taxes by two or more jurisdictions on the same income (in the case of income taxes), assets (in case of capital taxes) or financial transactions (in the case of revenue taxes). The intention of an agreement on double tax evasion is to make a country an attractive investment objective by facilitating double taxation. This form of relief is granted by exempting income from income collected in a foreign country or by granting credits to the extent that taxes have been paid abroad. DBAAs can be either complete to cover all sources of income or limited to specific areas such as the taxation of income from shipping, air transport, inheritance, etc.
India has DTAAs with more than eighty countries, including global agreements with Australia, Canada, Germany, Mauritius, Singapore, the United Arab Emirates, the United Kingdom and the United States. The revised Convention on the Prevention of Double Taxation between India and Cyprus, signed on 18 November 2016, provides for a tax on capital gains from the disposal of shares instead of a home-related tax under the Convention on the Prevention of Double Taxation, signed in 1994. However, a grandfather clause is provided for investments made before April 1, 2017 and for which capital gains continue to be taxed in the country where the taxpayer is based. It also provides assistance between the two countries for the collection of taxes and updates the provisions on the exchange of information to recognized international standards. The Double Tax Evasion Agreement (DBAA) is essentially a bilateral agreement between two countries. The main objective was to promote and promote economic exchanges and investment between two countries by avoiding double taxation.