<h1>India and Hong Kong Sign Pact to Avoid Double Taxation, Boost Investments, and Enhance Tax Transparency under Income Tax Act, 1961.</h1> The Union Cabinet of India has approved an agreement with the Hong Kong Special Administrative Region of China to avoid double taxation and prevent fiscal evasion concerning income taxes. This agreement is intended to enhance investment, technology, and personnel exchanges between India and Hong Kong, while also facilitating the exchange of information to improve tax transparency and curb tax evasion and avoidance. The agreement aligns with India's existing treaties under the Income Tax Act, 1961, which allows the government to establish such agreements with foreign entities.