Question

    The principle that “the same income should not be

    taxed twice in the hands of the same person” refers to which of the following?
    A Equity Correct Answer Incorrect Answer
    B Double Taxation Avoidance Correct Answer Incorrect Answer
    C Tax Neutrality Correct Answer Incorrect Answer
    D Tax Harmonization Correct Answer Incorrect Answer
    E Progressive Taxation Correct Answer Incorrect Answer

    Solution

    Double Taxation Avoidance is the principle that prevents the same income from being taxed twice in the hands of the same person, especially in cross-border scenarios. • India enters into Double Taxation Avoidance Agreements (DTAAs) with other countries to ensure that income is not taxed both in India and in the source country. • This principle upholds fairness and prevents economic inefficiency in global taxation.

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