DTAA for NRIs — Avoiding Double Tax on Global Income

Double Taxation Avoidance Agreements (DTAA) ensure income isn’t taxed twice—once in India and again in your resident country. Understanding DTAA clauses maximises legitimate after-tax returns.

How DTAA Works
If India and your country (say UAE, UK, US) have a DTAA, you can claim credit for taxes paid in India against your home-country liability. To avail, provide:

• Tax Residency Certificate (TRC) issued by your country.
• Form 10F and self-declaration of beneficial ownership.

For AIF/PMS Investors
Ensure fund administrators issue statements reflecting TDS credits and income classification aligned with DTAA terms (capital gains, interest, dividends).

Example
An NRI in UAE investing in an Indian AIF receives ₹10 lakh capital gain; tax is deducted in India. The TRC allows UAE tax credit, avoiding duplication.

Suggested Visual: Two flags linked by “Tax Credit Bridge.”
Key Takeaway: DTAA compliance converts taxation from a burden into a structured mechanism—paperwork equals protection.

Disclaimer: Educational only; consult a tax advisor.