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The Union Cabinet today gave its approval to the Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on income and on capital between the Government of India and the Government of the Grand Duchy of Luxembourg. The Agreement will stimulate the flow of capital, technology and personnel from India to Luxembourg and vice-versa. It will provide tax stability and reduce any obstacles in providing mutual cooperation. India has so far signed and notified such bilateral treaties for avoidance of double taxation with 71 other countries. In more than 20 DTAAs the scope of the agreement includes capital taxes.
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