TEHRAN (Press Shia Agency) – The Indian Union Cabinet has cleared a Double Taxation Avoidance Agreement (DTAA) between Iran and India which will promote investment flow and curb tax evasion, a report said.

The agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income between Iran and India was approved by the cabinet, headed by Indian Prime Minister Narendra Modi, an official statement said, The Economic Times reported.

The agreement will stimulate flow of investment, technology and personnel from India to Iran and vice versa, and will prevent double taxation, it added.

"The agreement will provide for exchange of information between the two contracting parties as per latest international standards. It will thus improve transparency in tax matters and will help curb tax evasion and tax avoidance," the statement said.

The proposed agreement also meets treaty related minimum standards under G-20 OECD Base Erosion and Profit Shifting (BEPS) Project, it said.