According to provisions of income tax laws, an NRI can avoid double taxation by seeking relief under the provisions of Double Taxation Avoidance Agreement (DTAA) between the two countries.
Under the provisions of DTAA, there are two ways to claim relief of tax exemption: Exemption Method and Tax Credit Method. With the application of the exemption method, if NRIs are taxed in a single country, they can be exempted in another. Under the tax credit method, when the income is taxed in both countries, relief of tax can be claimed in the residence country.
