🌐 Maximizing Tax Savings with Double Taxation Treaties (DTAA) – For Indian Taxpayers by Return Filings Via Flickr:
Earning income abroad while filing taxes in India?
You may be paying more tax than necessary — unless you know how to use DTAA and Foreign Tax Credit (FTC) provisions effectively.
✅ What is DTAA?
India has signed Double Taxation Avoidance Agreements (DTAAs) with 90+ countries to avoid taxing the same income twice.
These treaties can help you:
✔️ Eliminate double taxation ✔️ Reduce withholding tax ✔️ Claim credits for foreign tax paid
🔍 Here’s How to Use DTAA Smartly:
🧾 1. Choose the Right Tax Relief Method
Exemption Method: Income taxed only in one country
Tax Credit Method: Claim credit for foreign taxes against Indian tax due
📄 2. Claim FTC via Form 67
File Form 67 before submitting your ITR
Keep foreign tax payment proof ready (foreign Form 16, tax receipts, etc.)
📉 3. Use DTAA to Lower Withholding Taxes
Submit a valid Tax Residency Certificate (TRC) to avail benefits.
Some DTAAs allow reduced rates on:
✔️ Dividends ✔️ Royalties ✔️ Interest income
⚠️ 4. Stay Compliant to Avoid Penalties
Report foreign income & assets in your ITR
Misreporting may lead to fines under the Black Money Act
📌 Visual Explainer: 📸 Flickr: View Infographic 📌 Pinterest: Pin for Tax Season
💬 Don’t let foreign income double your taxes. 🔁 Reblog to help fellow consultants, freelancers, and NRIs. 📎 Save for future filings!
