Here are some important aspects of the India-Malaysia DTAA:

1. Residency: The DTAA defines residency as any person who, under the laws of a state, is liable to tax therein by reason of domicile, residence, place of management, or any similar criterion. It also includes political subdivisions, local authorities, or statutory bodies established under the Parliament’s act or a State Legislative Assembly.
2. Income from Immovable Property: Income derived by a resident of one contracting state from immovable property located in the other state may be taxed in that other state. This provision applies to income from the direct use, letting, or any other form of use of immovable property.
3. Business Profit: The DTAA stipulates that the profits of an enterprise of one contracting state shall be taxable only in that state unless the enterprise carries on business in the other state through a permanent establishment situated there.
4. Dividends, Interest, Royalties, and Fees for Technical Services: The DTAA allows for taxation of these income types in the state where they are received. It specifies withholding tax rates of 5% on dividends and 10% on interests, royalties, and fees for technical services. Notably, interests earned by government institutions are exempt from these withholding taxes.
5. Capital Gains: Gains derived by a resident of a state from the sale of immovable property situated in the other state may be taxed in that other state.
6. Director’s Fees: Director’s fees and similar payments earned by a resident of one contracting state as a member of the board of directors in a company resident in the other contracting state may be taxed in the latter.