S Sai Dharshini, Sastra Deemed University
Dhanuja A, Sastra Deemed University
ABSTRACT
In India, double taxation is a complicated issue that occurs when income is taxed by many jurisdictions. This paper explores this issue. Indian citizens are subject to a system of domestic and universal income taxes, although non-citizens are solely charged domestic income taxes. But the issue arises when a taxpayer, as a result of cross-border economic activities, has tax liabilities in both India and another country. India has strategically signed Double Taxation Avoidance Agreements (DTAAs) with various countries to overcome this difficulty. These agreements are intended to distribute taxing authority among the signatory states and include safeguards against double taxation for taxpayers. The tax credit system and exemption strategies are two often used techniques that seek to prevent or reduce instances of double taxation. Although these precautions are in place, difficulties still exist, particularly when it comes to the interpretation and enforcement of tax rules between jurisdictions. The worldwide tax system is continually being streamlined to ensure fair and effective taxation. The multidimensional nature of double taxation is scrutinised in this research study, along with its effects on taxpayers, the effectiveness of current controls, and suggestions for improvement. The study seeks to explore these intricacies in order to provide a thorough understanding of double taxation issues in India and to provide suggestions for ways that the international tax system may be improved.
Keywords: double taxation, double taxation avoidance agreement, taxpayers, tax
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