As notified by the Indian Ministry of Finance on February 10, 2014, the Protocol amending the India-UK double taxation agreement (DTA) entered into force in the UK and India on December 27, 2013. The DTA Protocol is immediately effective in India, and becomes effective in the UK: for income tax and capital gains, from April 6, 2014; for corporation tax, from April 1, 2014; and for petroleum revenue tax, from January 1, 2014.
The Protocol adds a revised article on dividends and provisions relating to the exchange of tax information and the right of tax auditors from one contracting state to conduct investigations in the other contracting state. The Protocol therefore allows the governments of India and the UK greater powers in combating tax evasion and artificial tax avoidance.
