New Delhi [India], Mar 15 (ANI): The Union Cabinet, chaired by Prime Minister Narendra Modi on Wednesday 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.
The agreement will stimulate the flow of investment, technology and personnel from India to Iran and vice versa, and will prevent double taxation. It will provide for the exchange of information between the two countries as per latest international standards.
The agreement will thereby, 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 the treaty related minimum standards under G-20 OECD Base Erosion and Profit Shifting (BEPS) Project, in which India participated on an equal footing.
As far as India is concerned, the Central Government is authorised 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 and for the exchange of information for the prevention of evasion or avoidance of income-tax chargeable under the Income-tax Act, 1961.