Notification No. 29/2021 [F.No.501/03/92-FTD-II] / SO 1442(E)

Last updated: 06 April 2021

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This notification announces that the Double Taxation Avoidance Agreement between India and Iran, signed on 17th February 2018, has officially entered into force on 29th September 2020. The agreement aims to prevent double taxation and fiscal evasion on income. Its provisions will apply in India for fiscal years beginning on or after 1st April 2021.

MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
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.

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FAQ :

The agreement is for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The agreement was signed at New Delhi on the 17th February 2018.

The agreement entered into force on the 29th day of September 2020.

The provisions of the agreement will 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, which means from 1st April 2021 onwards.

The Central Government is exercising powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961.