What are the new norms set by India for claiming benefits on tax avoidance treaties

India has introduced new norms in this area to regulate the claiming of benefits.
India has introduced new norms to regulate the claiming of benefits on tax avoidance treaties. Here are some key points:
  • Introduction of Limitation of Benefit (LOB) clause to prevent treaty abuse.
  • Requirement of Tax Residency Certificate (TRC) to claim treaty benefits.
  • Stipulation of Beneficial Ownership criteria for claiming benefits.
  • Imposition of General Anti-Avoidance Rules (GAAR) to counter aggressive tax planning.
  • Enhanced disclosure requirements for obtaining treaty benefits.
These new norms aim to ensure that the tax benefits under tax avoidance treaties are claimed legitimately, preventing abuse and ensuring fair taxation practices.
Answered 3 months ago
Mohit Preparing for Civil Services