CBDT news S.O. 1647(E) · 08 Apr 2026
Official title
Notification giving effect to the Amending Protocol to the India–Brazil Double Taxation Avoidance Agreement (DTAA) under section 90(1) of the Income‑tax Act, 1961. Click here to download.
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The Central Government has notified the Amending Protocol to the India–Brazil Double Taxation Avoidance Agreement, originally signed in 1988. This Protocol updates the convention to prevent tax evasion and treaty shopping, introduces new definitions for residents and permanent establishments, and modifies tax treatment for dividends, interest, royalties, and technical service fees. It also establishes new anti-abuse provisions, including an 'Entitlement to Benefits' article. The Protocol entered into force on October 18, 2025. In India, the provisions apply to income arising in any previous year beginning on or after April 1, 2026. Taxpayers engaged in cross-border transactions between India and Brazil must align their tax positions with these updated treaty provisions.
What you must do
Key dates
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Exceptions
If you do not comply
[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 17 MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 30th March, 2026 (Income-Tax)
S.O. 1647(E).—Whereas, the Protocol, amending the Convention and the Protocol between the Government of the Republic of India and the Government of the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, which was signed at New Delhi on the 26th April, 1988, as amended by the Protocol signed at Brasilia on the 15th October, 2013, was signed at Brasilia on the 24th August, 2022, as set out in the Annexure appended to this notification (hereinafter referred to as the said Amending Protocol);
And whereas, the date of entry into force of the said amending Protocol is the 18th October, 2025, being 30th day after the date of the receipt of the later of the notifications of the completion of the legal requirements and procedures for entry into force of the said Amending Protocol in accordance with paragraph 2 of Article 22 of the said Amending Protocol;
And whereas, sub-paragraph (a) of paragraph 2 of Article 22 of the said Protocol provides that the provisions of this Agreement shall have effect in India in respect of income arising in any previous year on or after the first day of April immediately following the calendar year in which the Amending Protocol enters into force.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Amending Protocol, as set out in the Annexure hereto, shall be given effect to in the Union of India.
[No. 39/2026 F. No. CBDT/1/2022-FT&TR-V Section-CBDT(Part-1)] Shri BHASKAR GOSWAMI, Jt. Secy.
PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE FEDERATIVE REPUBLIC OF BRAZIL FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT NEW DELHI ON 26 APRIL 1988 (AS AMENDED BY THE PROTOCOL SIGNED IN OCTOBER 2013)
The Government of the Republic of India and the Government of the Federative Republic of Brazil,
Desiring to amend the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at New Delhi on 26 April 1988 (as amended by the protocol signed in October 2013) (hereinafter referred to as “the Convention”);
Have agreed as follows:
The preamble to the Convention shall be deleted and replaced by the following:
“The Republic of India and the Federative Republic of Brazil,
Intending to conclude a Convention for the elimination of double taxation with respect to taxes on income without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Convention for the indirect benefit of residents of third States),
Have agreed as follows:”
The following new paragraph 2 shall be included in Article 1 of the Convention:
“2. This Convention shall not affect the taxation, by a Contracting State, of its residents except with respect to the benefits granted under Articles 19, 20, 21, 23, 24, 25 and 27.”
Article 2 of the Convention shall be deleted and replaced by the following:
“ARTICLE 2 Taxes covered
This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
The taxes to which the Convention shall apply are: a) in the case of India: the income tax including any surcharge thereon; (hereinafter referred to as "Indian tax"); b) in the case of Brazil: the federal income tax (hereinafter referred to as "Brazilian tax").
The Convention shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the abovementioned taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.”
Article 3 of the Convention shall be deleted and replaced by the following:
“ARTICLE 3 General definitions
For the purposes of this Convention, unless the context otherwise requires: a) the term “India” means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction according to the Indian law and in accordance with international law; b) the term “Brazil” means the Federative Republic of Brazil and, when used in a geographical sense, means the territory of the Federative Republic of Brazil, as well as the area of the sea-bed, its subsoil and the superjacent water column adjacent to the territorial sea, wherein the Federative Republic of Brazil exercises sovereign rights or jurisdiction in conformity with international law and its national legislation for the purpose of exploring, exploiting, conserving and managing the living and non-living natural resources or for the production of energy from renewable sources; c) the terms "a Contracting State" and "the other Contracting State" means the Republic of India or the Federative Republic of Brazil, as the context requires; d) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "enterprise" applies to the carrying on of any business; h) the term "international traffic" means any transport by a ship or aircraft, except when the ship or aircraft is operated solely between places in a Contracting State and the enterprise that operates the ship or aircraft is not an enterprise of that State; i) the term “nationals” means: (i) all individuals possessing the nationality of a Contracting State; (ii) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State; j) the term "tax" means Indian tax or Brazilian tax, as the context requires k) the term "competent authority" means: (i) in India: the Finance Minister, Government of India or his authorized representative; (ii) in Brazil: the Minister of Economy, the Special Secretary of the Federal Revenue of Brazil or their authorized representative; l) the term "fiscal year" means: (i) In the case of India: the financial year beginning on the first day of April; (ii) In the case of Brazil: the calendar year beginning on the first day of January
As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purposes of the taxes to which the Convention applies and any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.”
