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TMI BlogAgreement for avoidance of double taxation with Pakistan - Whether operative for assessment year 1972-73 and subsequent assessment yearsX X X X Extracts X X X X X X X X Extracts X X X X ..... rative for the assessment year 1972-73 and the subsequent assessment years in relation to Pakistan as well as to Bangladesh. For these assessment years, a person "resident" in India and liable to tax under the tax laws of India as well as Pakistan or Bangladesh will be entitled to relief from double taxation in India only in accordance with the provisions of section 91. 2. In regard to assessment years prior to the assessment year 1972-73 (including reopened assessments), the provisions of the aforesaid double taxation agreement, with Pakistan would continue to apply in relation to the present Pakistan as well as the erstwhile territory of East Pakistan now known as Bangladesh. Circular : No. 127 [F. No. 501/2/72-FDT], dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the charging provisions in the aforesaid Acts as adapted remain unaltered in both the Dominions, and shall apply to the following assessments made under the said Acts in the two Dominions: ( i ) Assessments made on or after the 15th day of August, 1947, for the assessment year 1947-48 (or for the corresponding chargeable accounting period). (ii) All other assessments made on or after the 1st day of April, 1948 excepting excess profits tax assessments for chargeable accounting periods for which provisional assessments have been made before the lst April, 1948. ARTICLE III - Save under the provisions of section 34 of the Indian Income-tax Act, 1922 and section 15 of the Excess Profits Tax Act, 1940, as adapted neither Domi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proportion of the tax payable in each Dominion as the excess or the doubly taxed income bears to the total income of the assessee in each Dominion. ( b ) Where at the time of assessment in one Dominion, the tax payable on the total income in the other Dominion is not known, the first Dominion shall make a demand without allowing the abatement, but shall hold in abeyance for a period of one year (or such longer period as may be allowed by the Income-tax Officer in his discretion) the collection of a portion of the demand equal to the estimated abatement. If the assessee produces a certificate of assessment in the other Dominion within the period of one year or any longer period allowed by the Income-tax Officer, the uncollected portion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Article IV] Source of income or nature of transaction from which income is derived Percentage of income which each Dominion is entitled to charge under the Agreement Remarks 1 2 3 4 1. ( a ) Salaries paid by employers other than Government. 100 per cent by the Dominion in which the salary is earned by service. Nil by the other. ( b ) Salaries paid by Government. 100 per cent by the Dominion which pays the salary Nil by the other. 2. ( a ) Interest on Government securities. 100 per cent by the Dominion where the securities are enfaced for payment of interest and pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derived from any money lent at interest and brought into a Dominion in cash or in kind. 100 per cent by the Dominion into which the money is brought. Nil by the other. ( g ) Transport : Ships, Air, Road. 100 per cent by the Dominion in which the traffic originates. Nil by the other. 6. Capital gains : ( a ) sale, exchange or transfer of an immovable capital asset, and any rights pertaining thereto. 100 per cent by the Dominion in which the capital asset is situated. Nil by the other. ( b ) From the sale, ex-change or transfer of other assets. 100 per cent by the Dominion in which the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich goods are sold. ( e ) Goods, merchandise or commodities manufactured by the assessee partly in one Dominion and partly in the other. 50 per cent of the profits by the each Dominion. 50 per cent of the profits by each Dominion. ( f ) ores, minerals, mineral oils and forest produce extracted in one Dominion and delivered by the extractor to a buyer in the same Dominion. 100 per cent of the profits by the Dominion in which minerals are extracted. Nil by the other. ( g ) Metal ores, minerals mineral oils and forest produce extracted in one Dominion and sold in the other without any further manufacturing process and without selling establishment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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