Double Taxation Avoidance Agreement

Recently, the Union Cabinet has approved the signing of the Protocol amending the Convention between India and Brazil for the Double Taxation Avoidance Convention (DTAC).Consider the following given statements about the Double Taxation Avoidance Agreement:

  1. DTAA is a tax treaty signed between two or more countries to help taxpayers avoid paying double taxes on the same income.
  2. It can be either be comprehensive, encapsulating all income sources, or limited to certain areas, which means taxing of income from shipping, inheritance, air transport, etc.

Choose the correct answer from the codes given below:

Only 1
Only 2
Both 1 and 2
Neither 1 nor 2