Finance Dictionary
DTAA
A Double Taxation Avoidance Agreement — a treaty between two countries preventing the same income being fully taxed in both. The India-US DTAA lets an investor offset tax paid in one country against liability in the other, usually via a foreign tax credit.
Example
A US dividend paid to an Indian resident has 25% withheld in the US; under the DTAA that amount can be claimed as a credit against Indian tax on the same dividend.
Related
NRI TaxCapital Gains