On the occasion of Japanese PM Shinzo Abe’s three-day visit to India beginning on Friday, the two countries have signed a protocol to amend the existing convention for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.
The protocol will provide that both India and Japan lend assistance to each other in the collection of revenue claims, the finance ministry said in statement, adding that it further provides for exemption of interest income from taxation in the source country with respect to debt-claims insured by the government or government-owned financial institutions.