What are Double Tax Agreements (DTAs) and how might foreign investors in India benefit from them?

Double Tax Agreements (DTAs) are bilateral agreements under which two states formalize tax rates (for taxes ranging from corporate to withholding tax) for individuals and corporate entities. India has over 90 such arrangements with other countries. Foreign investors benefit from such arrangements by avoiding double taxation – whereby, for example, corporate profits can be subject to taxation in India and in the corporation’s home jurisdiction. Moreover, DTAs often offer investors tax incentives, such as reductions on taxation of dividends.