India-Iran Current Affairs

India-Iran: Cabinet approves Agreement for Avoidance of Double Taxation

The Union Cabinet has approved Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income between India and Iran. The Agreement is on similar lines as entered into by India with other countries.

Key Facts

The agreement will stimulate flow of investment, technology and personnel from India to Iran & vice versa and prevent double taxation. It will provide for exchange of information between two contracting parties as per latest international standards. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance. It also meets treaty related minimum standards under G-20 OECD Base Erosion & Profit Shifting (BEPS) Project, in which India participated on equal footing.


The Central Government is authorized to enter into Agreement with other country or specified territory for avoidance of double taxation of income for exchange of information for prevention of evasion or avoidance of income-tax chargeable under Section 90 of Income Tax Act, 1961


India, Iran ink 9 agreements

India and Iran have signed nine agreements, including one on connectivity related to strategic Chabahar port and on double taxation avoidance.  These agreements were signed after bilateral talks between Prime Minister Narendra Modi and Iranian President Hassan Rouhani. The bilateral talks focused to boost cooperation in key areas of security, trade and energy. This was Hassan Rouhani’s first official state visit to India after he was elected Iran’s President in 2013. He had started his three-day visit from Hyderabad as the city has a long history of cultural and religious ties with Iran.

Signed Agreements are

Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on Income. It will avoid burden of double taxation between two countries in order to promote flow of investment and services.

MoU on Exemption from Visa requirement for holders of Diplomatic Passports. It will waive requirement of visa for travel of diplomatic passport holders in each country.

Exchange of Instrument of Ratification of Extradition Treaty. It brings into effect the Extradition Treaty signed between India and Iran in 2008.

Lease Contract for Shahid Beheshti Port- Phase 1 of Chabahar during Interim Period. It was signed between Port and Maritime Organization (PMO), Iran and India Ports Global Limited (IPGL).  Leasing is for 18 months to take over operation of existing port facilities.

MoU on Cooperation in the field of Traditional Systems of Medicine. It seeks to develop and strengthen cooperation in traditional systems of medicine including regulation of teaching, practice, drugs and drugless therapies.

MoU on establishment of an Expert Group on Trade Remedy Measures to promote cooperation in areas of mutual interest. It aims to establish a framework of cooperation in area of Trade Remedial Measures viz. anti-dumping and counterveiling duty.

MoU on Cooperation in the field of Agriculture and Allied Sectors. It includes joint activities, programmes, exchange of information and personnel, cooperation in field of agricultural crops, agricultural extension, horticulture, machinery, postharvest technology, plant quarantine measures, credit and cooperation, soil conservation, seed technology, livestock improvement, dairy development.

MoU on Cooperation in field of Health and Medicine. It seeks to establish comprehensive inter-ministerial and inter-institutional cooperation between two sides.

MoU on Postal Cooperation. It includes exchange of experience, knowledge and technology in e-commerce and logistics services; cooperation on philately, feasibility studies on using air and surface transit capacities of both countries.