Cabinet approves an agreement for avoidance of double taxation between India, Iran

New Delhi, Mar 15 The Union Cabinet, led by Prime Minister Narendra Modi on Wednesday approved an agreement for the avoidance of double taxation and the counteractive action of fiscal evasion with respect to taxes on income between India and Iran.

The agreement will empower the flow of investment, technology and personnel from India to Iran and vice versa, and will avert double tax collection. It will provide the trading of data between the two nations according to most recent international standards.

The agreement will thereby, eimprove transparency in tax matters and will help curb to tax avoidance and tax avoidance.

The agreement is on similar lines as entered into by India with different nations. The proposed agreement also meets the settlement related minimum standards under G-20 OECD Base Erosion and Profit Shifting (BEPS) Project, in which India took an interest 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 go into a concurrence with an outside nation or determined region for shirking of twofold tax collection of pay and for the trading of data for the counteractive action of avoidance or evasion of wage assess chargeable under the Income-impose Act, 1961.

On a related note, Iran President Hassan Rouhani went by India a month ago.