Article 1 - Persons covered - Nepal

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 12 th June, 2012 (INCOME-TAX) S.O. 1322 (E).- Whereas the annexed Agreement between the Government of the Republic of India and the Government of Nepal for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Agreement ) was signed in Kathmandu, Nepal on the 27th day of November, 2011. Whereas the said Agreement entered into force on the 16th day of March, 2012, being the date of the later of the notifications after completion of the procedures as required by the laws of the respective countries for the entry into force of the Agreement, in accordance with the provisions of paragraph 2 of article 30 of the Agreement. Whereas the provisions of the said Agreement shall have effect in India, in respect of income derived in any fiscal year beginning on or after the 1st day of April, 2013 in accordance with the provisions of paragraph 3 of article 30 of the Agreement. Now, Therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement annexed hereto shall be given effect to in the Union of India with effect from the 1st day of April, 2013. [Notification No. 20/2012 /F.No.503/03/2005-FTD-II] K. RAMALINGAM, Jt. Secy. AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF NEPAL FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of Nepal, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries, have agreed as follows: ARTICLE 1 PERSONS COVERED This Agreement shall apply to persons who are residents of one or both of the Contracting States.