International Tax is a field of tax where two countries are taxed simultaneously. Tax has become a universal sovereign issue nowadays and every Individual state has its own Exclusive right to tax its residents but when there is taxing of the same property or person by two different states then the disputes arise. International double taxation occurs where the tax authorities of two ormore countries concurrently impose taxes having the same bases and incidence of tax arises in such a manner that a person incurs a heavier tax burden than what he is supposed to incur. A country will usually reserve a right to tax its residents on their Global income and the tax authority usually wishes to tax all incomes and gains no matter the person is resident or not and this is done on source basis.

Taxing internationally revolves around the scope and legalities of different nations depending upon the agreements and treaties between the nation. Currently, India has DTAA (Double Taxation Avoidance Agreement) with 88 countries across the world and among that the DTAA is in force with 86 countries. DTAA mentions about the applicability of tax laws and rules on specific country and the possibility of situations where an individual / entity can attract double taxation obligation and corresponding avoidance and relaxations from the same. International tax policy development originates from the need to control the tax planning activities of multinational group of companies, who have considerable choice available to them as to where to locate their activities so as to potentially achieve tax savings in that particular country and of a resident.