Question

Q. The Double Tax Avoidance Agreement (DTAA) is-

• A.
  Treaty signed by all WTO members to avoid double taxation.
• B.
  Treaty signed between two or more countries to help taxpayers avoid paying double taxes on the same income.
• C.
  Treaty signed between two or more countries to curb black money.
• D.
  None of the above.

Answer 1

The correct option is B

Treaty signed between two or more countries to help taxpayers avoid paying double taxes on the same income.

Explanation: The Double Tax Avoidance Agreement (DTAA) is a tax treaty signed between two or more countries to help taxpayers avoid paying double taxes on the same income. A DTAA becomes applicable in cases where an individual is a resident of one nation, but earns income in another.