Avoidance of double taxation: treaty allocates taxing rights, limits source withholding and mandates information exchange to prevent evasion. Bilateral Convention provides a framework to avoid double taxation and prevent fiscal evasion between India and Romania by allocating taxing rights across income categories, defining residence and permanent establishment criteria (including inclusions, exclusions and a construction threshold), limiting source state withholding on dividends, interest, commission, royalties and fees for technical services, prescribing profit attribution and deduction rules for permanent establishments, and securing relief through a credit mechanism together with non discrimination, mutual agreement procedures, exchange of information and assistance in tax collection.