India has signed a pact with over 80 countries known as the Double Taxation Avoidance Agreement so that NRIs does not end up paying taxes twice – once in Indian and once in the country of their residence – on the same income. Under the provisions of the treaty, there are two ways to ensure there is no overlapping of tax payments. Under the exemption method, a person is taxed in one country and exempted in another. In the credit input method, your income taxes in both countries, and the exemption is claimed in the country of your current residence.