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I am an Indian citizen and I work remotely for a company based in Hong Kong. I have a fixed salary in USD which then gets converted to INR according to the exchange rate during the time of transaction, which then gets credited to my bank account (so my salary in INR is not really fixed).

I wanted to know if I could avoid income tax in India by filing something like a DTAA. How would that procedure go?

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DTAA is meant to avoid double taxation in two countries when an Indian citizen works abroad. As you are receiving salary in INR in an Indian account, it is considered as income in India and you are supposed to pay tax on it. There is no way to avoid this.

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The income is deemed to accrue in India. You need to declare this and pay taxes as per tax brackets.

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