India-UAE DTAA: Understanding tax benefits for NRI dividend income
Under the India-UAE Double Taxation Avoidance Agreement (DTAA), dividend income is addressed in Article 10. Though Article 10 makes a reference to domestic tax laws, it provides an autonomous definition of ‘dividend’, which does not rely on definition given under the Income Tax Act, 1961 (ITA).
According to this treaty definition, dividend income from shares is clearly covered, and you are entitled to a lower rate of taxation, at 10%, instead of the customary 20% (plus applicable surcharge and cess) under the ITA.
However, it needs to be further examined whether dividend income from mutual funds is similarly covered under Article 10.
Besides including dividend income from shares, the definition of ‘dividend’ under Article 10 also encompasses income from ‘corporate rights,’ which is taxed in the same manner as dividends from shares.
Related Products
Term Life Insurance: What It Is, Different Types, Pros and Cons
Home insurance is a type of insurance that protects your home, its furnishings, and valuable items from a wide range of man-made or natural disasters. Typically, it includes coverage for damages to the home’s exterior and interior, as well as for injuries that occur on the insured property. Providing protection for your home, belongings, and potential liabilities, home insurance ensures both peace of mind and financial security.
Business insurance, also known as commercial insurance, helps protect business owners from unexpected losses. We offer different types of insurance for businesses, including coverage for property damage, legal liability and employee-related risks. No matter what industry you are in, your company faces risks every day.
As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.
Life insurance is a way you can protect your family and loved ones, even after you pass away. Rather than leaving your family with existing debt, funeral expenses and other everyday costs, they’ll receive a tax-free death benefit or payout. This can provide financial security and stability. With a life insurance policy, you’re prepared for the worst but can plan for the best.
Cargo insurance, also known as motor truck cargo insurance and freight insurance, provides coverage for potential damage to the property of others while in transit or during loading or unloading. This coverage provides protection for accidents like collision, load strikes, fires and more.
Life insurance refers to the legally binding contract between a policyholder and an insurance company that provides financial protection to his/her family. The insurer promises to offer the insurance benefit in exchange for regular premiums paid by the life insured. The ‘financial protection’ under life insurance is provided in the form of life cover, also known as sum assured. It is a pre-agreed amount that is payable in case of an untoward incident with the life insured.
Commercial General Liability Insurance
Commercial General Liability insurance policy protects businesses against liability claims for bodily injury and property damage arising from business operations, products, or premises. It typically covers legal costs and settlements or judgments resulting from lawsuits filed against the business by third parties.
