India

Individual - Foreign tax relief and tax treaties

Last reviewed - 03 October 2019

Foreign tax relief

Residents are allowed a credit against their Indian tax liability for income tax paid abroad on income arising abroad, which is doubly taxed, according to the terms of the provisions of the relevant tax treaty.

Tax treaties

India has signed double tax avoidance agreements (DTAAs) with a majority of the countries and limited agreements with eight countries. The treaties provide for the income that would be taxable in either of the contracting states, depending on the understanding of the nations, and the conditions for taxing and the exemption from tax.

Below is a listing of the countries with which India has concluded DTAAs.

Albania Israel Qatar
Armenia Italy Romania
Australia Japan Russian Federation
Austria Jordan Saudi Arabia
Bangladesh Kazakhstan Serbia
Belarus Kenya Singapore
Belgium Korea Slovak Republic
Bhutan Kuwait Slovenia
Botswana Kyrgyzstan South Africa
Brazil Latvia Spain
Bulgaria Libya Sri Lanka
Canada Lithuania Sudan
China, People's Republic of Luxembourg Sweden
Colombia Macedonia Switzerland
Croatia Malaysia Syria
Cyprus Malta Tajikistan
Czech Republic Mauritius Tanzania
Denmark Mexico Thailand
Egypt Mongolia Trinidad and Tobago
Estonia Montenegro Turkey
Ethiopia Morocco Turkmenistan
Fiji Mozambique Uganda
Finland Myanmar Ukraine
France Namibia United Arab Emirates
Georgia Nepal United Kingdom
Germany Netherlands United States
Greece New Zealand Uruguay
Hong Kong Norway Uzbekistan
Hungary Oman Vietnam
Iceland Philippines Zambia
Indonesia Poland
Ireland Portugal

Tax Residency Certificate (TRC)

For the purpose of claiming a tax treaty benefit, it is necessary for an NR to obtain a TRC of it being resident of the other country or specified territory. In this connection, as an additional requirement, the government of India has notified Form 10F, wherein the person has to self-declare prescribed details.

List of limited agreements between India and other countries

India has entered into eight limited agreements for double taxation relief with respect to income of airlines/merchant shipping companies with the following countries:

Afghanistan Lebanon Peoples Democratic Republic of Yemen
Ethiopia Maldives Yemen Arab Republic
Iran Pakistan

Tax information exchange agreements (TIEAs) between India and other countries

The list of 19 countries with which India has entered into TIEAs for effective exchange of information relating to tax matters is given below.

Argentina Gibraltar Macau, China
Bahamas Guernsey Maldives
Bahrain Isle of Man Saint Kitts and Nevis
Bermuda Jersey Seychelles
Belize Liberia San Marino
Cayman Islands Liechtenstein

Social security agreements (SSAs)

To eliminate social security implication in two countries on account of cross border relocation of employees, India has entered into SSAs with the following 20 countries:

Australia Finland Netherlands
Austria France Norway
Belgium Germany Portugal
Brazil Hungary Quebec
Canada Japan Sweden
Czech Republic Korea Switzerland
Denmark Luxembourg

Except for Brazil and Quebec, all SSAs are operational.