Interest and dividends get real treaty relief here. Mutual fund gains get none at all, this old treaty never wrote that escape in.

The mutual-fund trap runs backwards from Nepal, Cyprus and Malta: this treaty has no residence-only escape clause for fund units at all, so an investor who has read about a neighbouring country's residents getting their Indian MF gains exempted assumes the same applies here. It doesn't. Article XIV's situs rule keeps both shares and units taxed exclusively in India, full stop.

The dividend rate has a shareholding trap identical in shape to other treaties but easy to get backwards: 10% only applies if the RECIPIENT is itself a company holding 10%+ of the payer, an individual investor is always in the 15% bracket, never the lower one, however large their personal holding.

'Other income' gives no fallback relief either: Article XXIV just leaves domestic law standing rather than handing residual income to the residence country, so don't assume anything not explicitly named in the treaty is automatically tax-free somewhere.

Partition-era and inherited property is common here specifically: cross-border Hindu-Bengali families often carry decades-old inherited flats or ancestral land in West Bengal generating rental income that was never formally declared for Indian TDS purposes, only the interest and dividend side has any treaty relief to claim, the property side never did.

This is one of India's oldest treaties (1992), so professional advice that assumes 'the usual modern DTAA pattern' without checking the specific treaty text gets Bangladesh wrong more often than most corridors.