Double
Taxation Avoidance Agreement between India and Iran
The Union
Cabinet, chaired by Prime Minister Narendra Modi has approved an Agreement for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with respect to taxes on income between India
and Iran on 14 March 2018.
The Agreement will stimulate
flow of investment, technology and personnel from India to Iran & vice versa,
and will prevent double taxation. The Agreement will provide for exchange of information
between the two Contracting Parties as per latest international standards. It will
thus improve transparency in tax matters and will help curb tax evasion and tax
avoidance.
The Agreement is on similar
lines as entered into by India with other countries. The proposed Agreement also meets treaty related
minimum standards under G-20 OECD Base Erosion & Profit Shifting (BEPS) Project,
in which India participated on an equal footing.
In so far as India is concerned,
the Central Government is authorized under Section 90 of the Income Tax Act, 1961
to enter into an Agreement with a foreign country or specified territory for avoidance
of double taxation of income for exchange of information for the
prevention of evasion or avoidance of income-tax chargeable under the
Income-tax Act, 1961.