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Government approves double taxation avoidance pact with Japan

  • Double taxation is levying of tax by two countries on the same declared income,  asset,  or financial transaction and is often eliminated by tax treaties between countries.
  • The union cabinet approved signing an agreement for amending the double taxation avoidance convention with Japan that was first signed in 1989 to check fiscal evasion.
  • The protocol will facilitate information exchange on tax payments, including bank transactions and on those without domestic tax interest.
  • The protocol facilitates both the countries to assist each other in revenue collection and exempting interest income from taxes in the source country on debt-claims insured by the government or state-run financial institutions.

Source: BusinessStandard

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