The DTAA applies to the sharing of information in a way that "does not hamper the countries' domestic interests." The revised treaty replaces an earlier agreement signed between the two nations in 1987, where Nepal did not provide for the sharing of banking information.

"The revised DTAA will provide stability to the residents of India and Nepal and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between the two countries," said Pranab Mukherjee, finance minister for India, in a joint press conference with Nepalese counterpart Barshaman Pun. 

Included in the revised DTAA is assistance in the collection of taxes between tax authorities, as well as respective anti-abuse provisions. Threshold withholding tax rates on dividends and interest have also been adjusted to adhere to international taxation requirements.