New Delhi, May 24 -- If an Indian resident earns income abroad or if a non-resident earns income in India, they could be taxed on the same income in both countries. To avoid such situations, nations usually have double taxation avoidance agreements (DTAAs), which enables taxpayers to pay taxes only in one nation.

However, to claim this benefit and prevent double taxation, taxpayers need to submit proof of the country in which they are tax residents. This is where a tax residency certificate becomes relevant. In India, this official document is issued by the income tax department that proves you are a tax resident in India for a particular financial year.

In India, individuals classified as 'Resident and Ordinarily Resident' (ROR) under ...