Double Taxation Avoidance Agreement (DTAA) is signed by the governments of two nations to eliminate double taxation on the same income in both the countries. DTAA prescribes, the country in which the income earned from a foreign country will be taxable. Let us understand this with these examples: DTAA between India and USA - As per the treaty, other income earned from India will be taxable in India and not USA; hence TDS will be applicable on Other Income as per tax laws in India. DTAA between India and UAE - As per treaty, Other Income earned from India will be taxable in UAE only; hence TDS provisions of India will not attract, however to avail this benefit the policyholder needs to submit valid TRC and Form 10F. Payouts under a life insurance / Pension policy (Non-annuity) comes under ‘Other Income’ Article and Annuity is a separate article in DTAA. Click here to view the list of countries where DTAA is applicable.