New Delhi, Mar 16 (KNN) The agreement on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income between India and Iran was approved by Union Cabinet, chaired by Prime Minister Narendra Modi.

The agreement is along the same lines as India had with other countries.

The agreement will increase the flow of investment, technology and personnel from India to Iran & vice versa and will prevent double taxation.

Further this agreement will help in exchange of information between the 2 contracting parties according to international standards and thus improve transparency in the tax structure and will help in curbing tax evasion and tax avoidance.

Treaty related minimum standards under G-20 OECD Base Erosion and Profit Shifting (BEPS) Project, in which India participated equally, will also be fulfilled under this agreement.

As far as India is concerned, the Central Government is authorized to enter into an agreement with foreign country or specified territory for avoidance of double taxation of income for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under Section 90 of the Income-tax Act, 1961. (From PIB inputs) (KNN/YV)