<h1>India and Bhutan Sign Historic Double Taxation Avoidance Agreement to Enhance Tax Stability and Prevent Fiscal Evasion.</h1> India and Bhutan signed a Double Taxation Avoidance Agreement (DTAA) on March 4, 2013, to prevent fiscal evasion and provide tax stability for their residents. This agreement, Bhutan's first DTAA with any country, ensures business profits are taxable in the source state if a permanent establishment exists. Income from international aircraft operations will be taxed where the enterprise is managed. Dividends, interest, royalties, and fees for services will be taxed in both the residence and source countries, with a maximum source tax rate of 10%. The agreement includes provisions for information exchange, tax collection assistance, and anti-abuse measures.