« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Budget-08: Cut in taxes, duties top India Inc wish list... Income tax exemptions for senior citizens... » India signs tax pact with Iceland November, 26th 2007 India on Friday signed a Double Taxation Avoidance Agreement (DTAA) with Iceland. Besides avoidance of double taxation and prevention of fiscal evasion in respect of taxes on income, the agreement aims at promoting economic co-operation between the two countries. The agreement was signed by finance minister P Chidambaram and his counterpart from Iceland Arni Mathiesen. Mr Chidambaram expressed the confidence that the agreement would result in high degree of comfort for investors of both the countries. Arni Mathiesen, in his response, said that DTAA would facilitate flow of more investment in both the countries and further enhance mutual economic relationship. DTAA between India and Iceland which will come into force after it is notified, covers income-tax as well as surcharge in the case of India. In the case of Iceland, income-tax paid to the state and to the municipalities are taken into account. DTAA provides for taxation of dividend, interest, royalties and fees for technical services-both in the country of residence as well as the country of source. However, the rate of tax in the country of source shall not exceed 10% of the gross amount of payment in case the beneficial owner of the payments is a resident of the contracting state. DTAA provides that capital gains from alienation of shares of a company shall be taxable in the country where the company is a resident. The incidence of double taxation shall be avoided by one country giving credit for taxes paid by its residents in the other country. The treaty also provides for exchange of information in cases under investigation in either of the two countries. Both the countries shall assist each other in collection of revenue claims. There is also a provision for limitation of benefits under DTAA to prevent misuse of the provisions of DTAA, an official statement said. The agreement is expected to stimulate the flow of capital, technology and personnel between the two countries. It will also contribute to the tax stability and facilitate mutual co-operation.