Avoidance of double taxation establishes allocation of taxing rights and limited source-state withholding on dividends, interest and royalties. Bilateral Agreement implements rules for allocation of taxing rights between India and Malaysia, defines residency and permanent establishment, specifies source state taxing rights for immovable property, business profits, shipping and transport, and prescribes limited source state withholding on dividends, interest, royalties and fees for technical services where the recipient is beneficial owner; it provides elimination of double taxation by credit/deduction, a Mutual Agreement Procedure for disputes, exchange of information with confidentiality safeguards, and rules on entry into force and termination.