Kevin Moses Paul
18 February 2021
To be precise you need to be aware of the double taxation agreement in order to clarify your doubts.
I've explained the agreement for you down below.
The Double Taxation Avoidance Agreement or DTAA is a tax treaty signed between India and another country ( or any two/multiple countries) so that taxpayers can avoid paying double taxes on their income earned from the source country as well as the residence country. At present, India has double tax avoidance treaties with more than 80 countries around the world.
The need for DTAA arises out of the imbalance in tax collection on global income of individuals.
If a person aims to do business in a foreign country, he/she may end up paying income taxes in both cases (i.e. the country where the income is earned and the country where the individual holds his/her citizenship or residence).
For instance, if you are moving to a different country from India while leaving income sources such as interest from deposits in here, you will be charged interest by both India and the country of your current residence as per your consolidated global earnings. Such a situation would lead you to pay twice the tax over the same income.
This is where the DTAA becomes useful for taxpayers.
NRIs who are working in other countries, the Double Taxation Avoidance Agreement helps to avoid paying double taxes on income earned in both their country of residence and India. There are 80 countries which India has this agreement with.
-source: bankbazaar
Hope it Helps
Thanks
Kevin Moses Paul