Dtaa Agreement With Canada

3. Losses incurred by a Contracting State resident in the course of betting transactions the profits of which may be taxed in the other Contracting State shall be deductible for the purposes of taxation in that other State to the extent that such losses would be deductible if they were incurred by a State established in that other State. 3. Where a company is established in both Contracting States under paragraph 1 below, it shall be deemed to be established in that State if it was established under the laws in force in a Contracting State. Notwithstanding the above sentence, a company established in a Contracting State, established in both Contracting States and continued at any time in the other State Party in accordance with the company law of that other State shall be deemed to be resident in that other State, provided that it remains resident in that other State. 5. This article shall not be construed as establishing or providing, on the basis of such rights of either State Party, an administrative or judicial right in respect of the claim of the requesting State on revenue definitively established. If the requesting State loses at any time, until a request for assistance under this Article is fulfilled, the right to collect the tax claim under its domestic law, the competent authority of the requesting State shall immediately withdraw the request for assistance in the event of recovery. Long-term capital gains may be exempt from income tax to the extent that they are reinvested in India in certain bonds or in a dwelling house in India. The new dwelling house must be purchased within one year or two years after the date of the transfer or built within three years from the date of transfer. However, there are some restrictions on the sale of a new home and the amount of investment in bonds.

Compensation not paid by a Contracting State or a political subdivision or territorial collectivity to a citizen of that State for services provided in the performance of the tasks of the State shall be taxable only in that State. However, the provisions of Article XIV (Independent Personal Services), XV (Dependent Personal Services) or XVI (Artists and Sportsmen) shall apply and the above rate shall not apply to remuneration paid for services provided in the course of an activity or activity carried on by a Contracting State, a political subdivision or a local authority. 1. . . .