Article 2 - Taxes Covered - Canada

ARTICLE 2 TAXES COVERED 1. This Agreement shall apply to taxes on income and on capital imposed on behalf of each Contracting State, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property. 3. The existing taxes to which the Agreement shall apply are in particular: (a) in the case of Canada: the taxes imposed under the Income-tax Act of Canada, (hereinafter referred to as Canadian tax ); (b) in the case of India: (i) the income-tax including any surcharge thereon imposed under the Income-tax Act; (ii) the wealth-tax imposed under the Wealth-tax Act; (hereinafter referred to as Indian tax ). 4. The Agreement shall apply also to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. 5. At the end of each year, the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws which are the subject of this Agreement.