DTAA refers to the Double Taxation Avoidance Agreement entered into between two countries to avoid taxation of the same income in both jurisdictions. India has such treaties with around 90 countries. These agreements generally cover payments such as interest, royalty, dividend and fees for technical services, though other categories of income may also be covered depending on the treaty.
For payments made to non-residents, the applicable TDS rate may depend on the nature of remittance and the DTAA provisions with the recipient’s country of residence. Accordingly, treaty rates need to be referred to country-wise and payment-wise before applying TDS.
To make this reference easier, we have compiled the DTAA rate chart in a tab-wise format for quick and convenient access.
Note: The DTAA rates shown in the chart are generally the higher rate applicable under the relevant remittance category for the respective country. It is advised to verify the exact treaty rate based on the nature of remittance and the applicable DTAA provisions.