Exemption of international air transport income secures tax relief between Contracting States and mandates reciprocal refunds. The Agreement exempts income from operation of aircraft in international traffic earned by an enterprise of one Contracting State from tax in the other Contracting State, including participations in pools. It specifies applicable taxes in each State and extends to substantially similar subsequent taxes, defines key terms such as enterprise and operation of aircraft, preserves domestic assessment laws except as modified by the Agreement, sets entry into force and termination mechanisms, and includes reciprocal provisions for refunding taxes or deposits paid by Alitalia and Air India in respect of income exempt under the Agreement.