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<h1>India-Chile Pact Eliminates Double Taxation, Prevents Fiscal Evasion; Follows Income-tax Act, 1961; Effective April 2023</h1> An agreement between India and Chile aims to eliminate double taxation and prevent fiscal evasion related to income taxes. Effective from October 19, 2022, the agreement applies to residents of either or both countries. Income derived through entities regarded as fiscally transparent under either country's tax law is considered resident income for taxation purposes. The agreement does not affect a country's right to tax its residents, except for specific benefits outlined in certain articles. The provisions are enacted under India's Income-tax Act, 1961, and are effective in India from the fiscal year beginning April 1 following the agreement's enforcement.