- India’s Double Taxation Avoidance Agreements are designed to prevent income from being taxed both in India and in an NRI’s country of residence, covering income such as interest, rent, capital gains, and professional fees.
- Despite wide treaty coverage with nearly 100 countries, many NRIs overpay tax due to missing documents or incorrect application of DTAA provisions rather than ineligibility.
- In the absence of valid DTAA documentation, banks and payers apply higher default TDS rates, often leading to excess tax payments and delayed refunds.
- Experts note that accurate residency determination, proper treaty mapping, and timely filing of prescribed forms are essential to fully benefit from DTAA relief and improve cash flow.
