DoubleTaxationIndia – Bangladesh tax treaty: residence, 183 days, rates
Convention between the Government of the Republic of India and the Government of the People's Republic of Bangladesh for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at New Delhi on 27 August 1991; amended by the Protocol signed at Dhaka on 16 February 2013)
- Signed: 27/08/1991
- In force since: 27/05/1992
- Official text
If both countries treat you as resident
- Deemed resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, of the State with which his personal and economic relations are the closest (centre of vital interests). Art. 4(2)(a) India–Bangladesh Convention (1991)
- The Central Government may enter into agreements for relief from double taxation and avoidance of double taxation; where an agreement applies, the Act applies only to the extent more beneficial to the assessee (s. 159(4)). A non-resident may claim treaty relief only with a certificate of residence from the other country's government and the prescribed documents and information (s. 159(8)). Income-tax Act, 2025, s. 159
- If the centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, the individual is deemed a resident of the State in which he has an habitual abode. Art. 4(2)(b) India–Bangladesh Convention (1991)
- Habitual abode in both Contracting States or in neither of them — resident of the State of which he is a national; national of both Contracting States or of neither of them — the competent authorities settle the question by mutual agreement. Art. 4(2)(c)–(d) India–Bangladesh Convention (1991)
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 120 days in the tax year. | Art. 7, Art. 15 |
| Pension | Only the source country (for pensions, the paying country). | Art. 19 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Rent from real estate | Only the country where the property is located. | Art. 6 |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 11(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 12(2)–(3) |
| Royalties (copyright, licences) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 13(2) |
| Sale of property or shares | Real estate: the country where it is located may tax. Other property: under certain conditions the source country may also tax (see the article). | Art. 14 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 24 |
How double taxation is relieved
- Bangladesh: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(3)–(4)
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(1)–(2)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.