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of <h1>India-Nepal DTAA covers income taxes, surcharges, and surtaxes; mandates mutual updates on tax law changes for transparency.</h1> The Double Tax Avoidance Agreement (DTAA) between India and Nepal applies to specific taxes in both countries. For India, it covers income tax, including surcharges under the Income-tax Act, 1961, and the surtax under the Companies (Profits) Surtax Act, 1964. For Nepal, it applies to income tax under the Income-tax Act, 2031. The agreement extends to any similar taxes introduced after its signing. Both countries must inform each other of significant changes in their tax laws, ensuring transparency and cooperation in tax matters.
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