LIBOR Vs DTAA

LIBOR is an acronym used for London Interbank Offered Rate.
It is the benchmark rate used by most of the financial institutes in the world for short term lending. LIBOR is primarily used by banks for interbank lending. So in a way, it is the rate at which private borrowers access the market for short-term funds. LIBOR is usually greater than the interest rate on government bonds.


London Inter-Bank Offered Rate or LIBOR is established each business day by the British Bankers' Association. It is an "offered" interest rate between a set of banks in the United Kingdom, but the interest rate is widely used in loan contracts (e.g. in Mortgages).





Double Taxation Avoidance Agreement (DTAA)
A DTAA, also referred to as a Tax Treaty, is a bilateral economic agreement between two nations that aims to avoid or eliminate double taxation of the same income in two countries.

This is the one of the reasons that India has growing FDI inflows.

The benefits of a DTAA for an Indian cannot be stated definitively, because India has a comprehensive Double Taxation Avoidance Agreement (DTAA) with 84 countries as of now; and the provisions vary from country to country. So let me try and give you a simple idea of what a DTAA is.
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