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India-Australia DTAA

Treaty signed: July 25, 1991  |  Effective from: December 24, 1991

● Live · Rates served from /api/tax-rules/dtaa/AU

Dividends

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Interest

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Royalties

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Capital Gains

Fees for Technical Services

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NRI / Practical Note: Many Indian students and skilled migrants in Australia have Indian-source passive income (NRO interest, rental income). India retains the right to tax this. The 15% DTAA rate on interest from NRO accounts is lower than the standard 30% TDS, providing relief. Indian residents receiving Australian dividends pay 15% withholding in Australia.

Key Treaty Provisions

  • Covers Indian students, temporary migrants, skilled workers in Australia with Australian-source income not taxable in India
  • PE threshold: 183 days for services PE
  • Franking credits from Australian dividends: available to Australian resident shareholders but complex for Indian residents
  • Capital gains on Indian real estate: taxable in India even for Australian residents
  • Superannuation: no specific provision - taxed per domestic law in both countries

Frequently Asked Questions

Is Australian salary taxable in India for an Indian resident working in Australia?

If you are a Non-Resident Indian (spend <182 days in India), your Australian salary is not taxable in India - it is not India-sourced. If you become a Resident of India (returned from Australia), your global income including Australian salary is taxable in India. You then claim credit for Australian taxes paid to avoid double taxation.

What is the DTAA rate on interest income from NRO accounts for Australian-resident NRIs?

Under the India-Australia DTAA, interest is taxable at 15% in India. This is lower than the standard 30% TDS applicable to NRIs on NRO account interest. Submit TRC and Form 10F to your bank to avail the 15% rate.

Does India tax Australian capital gains for Indian residents?

India taxes gains on Australian securities for Indian residents under domestic law (taxed at slab rate or applicable capital gains rate). Australia also taxes its residents on worldwide gains. Credit can be claimed in India for Australian Capital Gains Tax (CGT) paid, under Section 91 of the Income Tax Act.

Browse all articles

20 articles
Art. 1
Persons Covered

Article 1 of the India-Australia DTAA governs persons covered.

Art. 4
Resident

Article 4 of the India-Australia DTAA governs resident.

Art. 5
Permanent Establishment

Article 5 of the India-Australia DTAA governs permanent establishment.

Art. 7
Business Profits

Article 7 of the India-Australia DTAA governs business profits.

Art. 8
Shipping, Inland Waterways, and Air Transport

Article 8 of the India-Australia DTAA governs shipping, inland waterways, and air transport.

Art. 9
Associated Enterprises

Article 9 of the India-Australia DTAA governs associated enterprises.

Art. 1015%
Dividends

Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie

Art. 1115%
Interest

Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with

Art. 1210%
Royalties

Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain

Art. 12A10%
Fees for Technical Services

FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci

Art. 13
Capital Gains

Article 13 allocates taxing rights over capital gains between India and Australia.

Art. 14
Independent Personal Services

Article 14 of the India-Australia DTAA governs independent personal services.

Art. 15
Income from Employment

Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.

Art. 17
Artistes and Sportspersons

Article 17 of the India-Australia DTAA governs artistes and sportspersons.

Art. 18
Pensions

Article 18 of the India-Australia DTAA governs pensions.

Art. 19
Government Service

Article 19 of the India-Australia DTAA governs government service.

Art. 23
Elimination of Double Taxation

Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre

Art. 25
Mutual Agreement Procedure (MAP)

MAP allows the competent authorities of India and Australia to resolve disputes - particularly transfer pricin

Art. 26
Exchange of Information

Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.

Art. 29
Entitlement to Benefits (PPT / LOB)

Treaty benefits are denied where the principal purpose of the transaction was to obtain them.

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