India has concluded a comprehensive double taxation treaty with 88 countries, 85 of which have entered into force.  This means that there are agreed tax rates and jurisdictions for certain types of income to be collected in one country for a tax established in another country. Under India`s Income Tax Act 1961, there are two provisions, Section 90 and Section 91, which provide taxpayers with a special facility to protect them from double taxation. Section 90 (bilateral relief) applies to taxpayers who have paid tax to a country with which India has signed double taxation treaties, while Section 91 (unilateral relief) grants benefits to taxpayers who have paid taxes to a country with which India has not signed an agreement. Thus, India relieves both types of taxpayers. Prices vary from country to country. While double taxation treaties provide for relief from double taxation, Hungary has only about 73. This means that Hungarian citizens who receive income from the approximately 120 countries and territories with which Hungary does not have an agreement are taxed by Hungary, regardless of taxes already paid elsewhere. There are four main effects of signing a double taxation convention.
For example, the double taxation treaty with the United Kingdom provides for a period of 183 days during the German tax year (which corresponds to the calendar year); Thus, from 1 September to 31 May (9 months), a UK citizen could work in Germany and then apply to be exempt from German tax. Since double taxation treaties guarantee the protection of the income of some countries, Cyprus has concluded more than 45 double taxation treaties and negotiates with many other countries. These agreements generally allow a credit on the tax levied by the country where the taxable person resides for taxes levied in the other contracting country, which has the consequence that the taxable person does not pay more than the higher of the two rates. Some agreements provide for an additional tax credit for taxes that would otherwise have had to be paid had there been no incentives in the other country resulting in an exemption or reduction. In the event of an objection between the provisions of the Income Tax Act or the Double Taxation Convention, the provisions of the latter shall have priority. The double taxation treaty between India and Singapore currently provides for domicile-based taxation on capital gains from shares in a company. The Third Protocol amends the Agreement with effect from 1 April 2017 by providing for withholding tax on capital gains from the transfer of shares in a company. This will reduce revenue losses, avoid double non-taxation and streamline investment flows. In order to provide a guarantee to investors, investments in shares made before 1 April 2017 were made in accordance with the conditions laid down in the limitation of benefits clause provided for in the 2005 Protocol. .