Treaty relief
Which treaty applies, which article, and the lower rate or exemption it gives.
All taxation services
Taxation
International Tax and DTAA
FinAura works out how cross-border income and payments are taxed: under Indian law, under the tax treaty with the other country, and whichever is more favourable where the law allows. We cover payments abroad, income from abroad, permanent establishment questions and foreign tax credit, with the documents needed to claim treaty relief.
- Led by Chartered Accountants
- GST and income tax in one team
- Bangalore and across India
What is covered
What International Tax Covers
Payments out, income in, and the treaties between.
Payments abroad
Withholding tax on fees, royalties, interest and services paid to non-residents.
Income from abroad
How foreign income is taxed in India and how foreign tax is credited.
Permanent establishment
Whether a foreign company's presence in India, or yours abroad, creates a taxable base.
Residency documents
Tax residency certificates and the declarations needed to claim treaty benefits.
Structuring
Cross-border structures reviewed for tax and substance.
How the month runs
How We Work Through a Cross-Border Question
Facts, law, documents, advice.
Step 1
Facts
- Parties and countries
- Nature of income
- Contracts read
Step 2
Law
- Indian law
- Treaty article
- More favourable view
Step 3
Documents
- Residency certificate
- Declarations
- Forms for remittance
Step 4
Advice
- Written note
- Withholding applied
- Returns aligned
Your part
What We Need From You
- 01Contracts and invoices
- 02Residency details of each party
- 03Past tax treatment, if any
Our part
What You Get
- A written view on the tax treatment
- Treaty relief claimed with the right documents
- Withholding at the right rate
- Foreign tax credited where allowed
A common question
Can a tax treaty lower the tax I pay?
Yes. Where India has a treaty with the other country, a non-resident can choose the treaty rate if it is more favourable than Indian law, provided the conditions are met.
Those conditions include a tax residency certificate and the prescribed declaration, and anti-abuse rules can deny relief where the arrangement lacks substance.
See Forms 15CA and 15CBReliefClaimed with documents
Tax treatyWhere more favourable
Indian lawThe starting point
Who it is for
Who We Advise
Businesses paying abroad
Software, services, royalties and interest.
Exporters of services
Foreign clients withholding tax.
Foreign companies in India
Branches, projects and staff in India.
Individuals with foreign income
Salary, investments or property abroad.
The rules, in plain English
What the Law Says
Income-tax Act, 2025
In force from 1 April 2026
Income earned up to 31 March 2026 is still assessed under the Income-tax Act, 1961. From 1 April 2026 the 2025 Act applies, with a single 'tax year', renumbered sections and new form numbers under the Income-tax Rules, 2026.
Official source: incometax.gov.inIncome-tax law
Tax treaties
Where India has a tax treaty, a non-resident is taxed under the treaty or Indian law, whichever is more beneficial, subject to documentation and anti-abuse rules.
Official source: incometax.gov.inIncome-tax law
Foreign tax credit
Residents can claim credit for tax paid abroad on income also taxed in India, subject to the rules and a prescribed statement.
Official source: incometax.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
International Tax Questions, Answered
What is a DTAA?
A Double Taxation Avoidance Agreement, a tax treaty between India and another country that decides which country taxes which income, and at what rate, so the same income is not fully taxed twice.
What do I need to claim treaty relief?
Usually a tax residency certificate from the other country and the prescribed declaration, along with facts that meet the treaty's conditions.
How is foreign tax credited in India?
A resident who pays tax abroad on income also taxed in India can claim credit, subject to the rules and a statement filed with the return.
Do you advise on specific countries?
Yes, on the treaty between India and that country. Where foreign law matters, we work with an adviser in that country.
Often Taken Together
All 16 Taxation services01TaxationForeign Remittance Certificates (Form 15CA and 15CB)The declaration and CA certificate banks ask for before sending money abroad, now Forms 145 and 146, with the tax and treaty position checked.02TaxationTransfer Pricing DocumentationDocumentation and compliance for transactions between related companies in India and abroad, prepared with the tax rules in view.03TaxationNRI TaxationReturns, residential status, rental and capital gains computations and repatriation paperwork for non-resident Indians.04Tax & ComplianceROC & Corporate ComplianceAnnual ROC filings, director KYC, event-based filings and LLP to company conversion.05Startups, Setup & GrowthBusiness Setup & RegistrationsCompany, LLP, startup, MSME and trademark registration, with compliance ready from day one.