DT9552 - Double Taxation Relief Manual: India: treaty summary
The table summarises the provisions of the treaty as they relate to income beneficially owned by UK residents. The rate shown is the ‘treaty rate’ and does not reflect taxes chargeable under domestic law before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which India is permitted to tax income in the relevant categories under the treaty. Rates chargeable under domestic law may be higher or lower.
In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk.
Subject | Comments | Article |
|---|---|---|
Portfolio dividends | 10% (Note 1) | 11 |
Dividends on direct investments | 10% | 11 |
Conditions for lower rate on dividends on direct investments | N/A | N/A |
Property income dividends | 15% | 11 |
Interest | 15% (Notes 2 and 3) | 12 |
Royalties | 10%/15% (Note 4) | 13 |
Fees for technical services | 10%/15% (Note 4) | 13 |
Government pensions | Taxable only in India | 19 |
Other pensions | Taxable only in the UK | 20 |
Arbitration | No | N/A |
Note 1: Except for property income dividends, which are taxable up to 15%
Note 2: Interest arising in India and beneficially owned by a UK resident bank carrying on a bona fide banking business is taxable in India at a reduced rate of 10%.
Note 3: Interest is exempt from tax in India where it is:
- paid to the UK government or political subdivision, or a UK local authority
- paid in respect of a loan made, guaranteed or insured, or any other debt-claim or credit guaranteed or insured, by the UK Export Credits Guarantee Department (UK Export Finance)
Note 4: A reduced rate of 10% applies to payments for the use of, or the right to use, any industrial, commercial or scientific equipment (equipment leasing payments) and to any fees for technical services that are ancillary and subsidiary to the use of the leased equipment.