India France Double Taxation Avoidance Agreement


India and France recently signed a double taxation avoidance agreement (DTAA) on March 10, 2021, which aims to prevent double taxation on income and capital gains of Indian and French residents. This agreement is expected to provide relief to taxpayers and improve trade and investment between the two countries.

The DTAA between India and France is the latest addition to the existing network of DTAA agreements signed by India with many countries to avoid double taxation. The agreement will provide a mechanism for resolution of disputes and will also enable exchange of information on tax matters between the two countries.

This agreement covers various aspects of taxation, including income from immovable property, business profits, dividends, interest, royalties, and capital gains. It outlines the rules on how income and capital gains earned by residents of both countries will be taxed in the respective countries.

The agreement also includes provisions to curb tax evasion and avoidance. It provides for the exchange of information between the tax authorities of the two countries, which will help in checking tax evasion and avoidance. It also includes a mutual agreement procedure (MAP) for resolving disputes between taxpayers and tax authorities.

Moreover, the DTAA agreement between India and France is expected to boost trade and investment between the two countries. It will promote cross-border investment by providing tax relief to investors and reducing taxation barriers. It will also help in attracting foreign investment to India, especially in the areas of technology, renewable energy, and infrastructure.

In conclusion, the DTAA agreement between India and France is an important step in strengthening economic ties between the two countries. It provides a framework for avoiding double taxation, resolving disputes, and improving information exchange on tax matters. The agreement will also provide a conducive environment for trade and investment between India and France.