New Delhi, June 23 -- With increasing cross-border employment, foreign investment, and global freelance income, Indian taxpayers often face situations where the same income is taxable in two countries. India addresses this through the Double Taxation Avoidance Agreement (DTAA) framework.

DTAA is not designed to eliminate tax liability altogether. Instead, it ensures that taxpayers do not pay tax twice on the same income by either allocating taxing rights between countries or allowing tax paid abroad to be adjusted against tax payable in India.

A Double Taxation Avoidance Agreement (DTAA) is a bilateral tax treaty signed between India and another country. Its purpose is to define how different types of income earned across borders will b...