The double taxation convention is a convention signed by two countries. The agreement is signed to make a country an attractive tourist destination and allow NGOs to get rid of the multiple payment of taxes. The DTAA does not mean that NRA can avoid taxes altogether, but it does mean that NRA can avoid higher taxes in both countries. DTAA allows an NRA to reduce its tax impact on income generated in India. DTAA also reduces cases of tax evasion. The Double Tax Avoidance Agreement (DBAA) is a tax treaty signed between two or more countries to help taxpayers avoid double taxes on the same income. A DBAA is applicable in cases where a person is resident in one nation but obtains income in another nation. Example of the double taxation treaty: assuming that interest on NRA bank deposits results in a tax deduction of 30% at source in India. Since India has signed double taxation treaties with several countries, taxes can only be deducted up to 10-15% instead of 30%. It is not uncommon for a company or individual established in one country to make a taxable profit (income, profits) in another country. It may happen that a person has to tax this income on the spot and in the country where it was obtained. The stated objectives of concluding a convention often include reducing double taxation, eliminating fiscal evasion and promoting the efficiency of cross-border trade.  It is generally accepted that tax treaties improve the security of taxable persons and tax authorities in their international transactions.
 For example, take the DBA between India and Singapore. Subsequently, the capital gains on shares of the company are taxed per residence. It helps to reduce revenue losses, avoid double taxation and rationalize investment flows. There are two types of double taxation: judicial double taxation and economic double taxation. In the first, where the source rule overlaps, the tax is levied by two or more countries, in accordance with their national laws, in respect of the same transaction, generates or is considered to be levied in their respective jurisdictions. In the latter case, when the same transaction, property or capital is taxed in two or more states, but in the hands of another person, double taxation is created.  In the secular language, a treaty is an agreement formally concluded between two or more independent nations. The Oxford Companion to Law defines a treaty as “an international agreement, normally in writing, concluded under different titles (treaty, convention, protocol, covenant, covenant, law, act, declaration, concordat, exchange of notes, agreed minutes, memorandum of understanding) between two or more states on the object of international law, which is intended to create rights and obligations between them and is subject to international law.