Govt nod for SAARC agreement

The Union Cabinet on Wednesday gave its approval for the proposed SAARC Limited Multilateral Agreement for the Avoidance of Double Taxation and Mutual Administrative Assistance in tax matters.

The agreement seeks to promote mutual administrative assistance and cooperation in tax matters among member states of the SAARC, Finance Minister P Chidambaram said after the Cabinet meeting.

It would also provide tax relief to students and teachers for pursuing their academic interest.

The responsibility of preparing a draft on the issue was entrusted to India, he said.

Chidambaram said that the Cabinet approved the creation of a post of chairman of the National Council of Rural Institute as proposed by the human resource development ministry.