Agreement between Government of Republic of India and the Government of the Islamic Republic of Iran For the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income.

New Delhi, the 1st April, 2021

(Income-tax)

S.O. 1442(E).—Whereas, an Agreement between the Government of the Republic of India and the Government of the Islamic Republic of Iran for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income was signed at New Delhi on the 17th February, 2018 as set out in the Annexure to this notification (hereinafter referred to as the „Agreement‟);

And whereas, the said Agreement entered into force on the 29th day of September, 2020, being the date of the later of the notifications of the completion of the procedures required by the respective laws for entry into force of the said Agreement, in accordance with paragraph 2 of Article 30 of the said Agreement;

And whereas, sub-paragraph (b) of paragraph 3 of Article 30 of the said Agreement provides that the provisions of the Agreement shall have effect in India in respect of taxes on income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the Agreement enters into force;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Incometax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement, as annexed hereto, shall be given effect to in the Union of India.

ANNEXURE
AGREEMENT
BETWEEN
THE GOVERNMENT OF
THE REPUBLIC OF INDIA
AND
THE GOVERNMENT OF
THE ISLAMIC REPUBLIC OF IRAN
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION
WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of India and the Government of the Islamic Republic of Iran,
Intending to conclude an Agreement for the elimination of double taxation with respect to taxes on income without creating opportunities for non taxation or reduced taxation through tax evasion or avoidance (including also through treaty-shopping arrangements aimed at obtaining reliefs provided in this Agreement for the indirect benefit of residents of third States),

Have agreed as follows:

Article 1
PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2
TAXES COVERED

1. 1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied

2. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

1. 3. The existing taxes to which the Agreement shall apply are in particular:
   1. a) in the case of the Islamic Republic of Iran:
   2. the income tax;
   4. b) in the case of India:
   5. the income tax, including any surcharge thereon.

4. 4. The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other within a reasonable period of any significant changes that have been made in their respective taxation laws

To Read More :
Click the link below :

https://www.dropbox.com/s/7s79dhxo8rfgpn7/notification_29_2021%2Cincometax.pdf?dl=0