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CS Professional · Advanced Direct Tax Laws and Practice · Double Taxation Avoidance Agreement (DTAA)

A non-resident company, Alder Holdings Ltd, wishes to claim relief under a tax agreement entered into under section 159 of the Income-tax Act, 2025. Which condition must it satisfy?

A non-resident claiming treaty relief must obtain a certificate of residence from the Government of its own country or specified territory and also provide other prescribed documents and information, as required by section 159(8). No Indian residence certificate or shareholding condition applies.

  1. AObtain a certificate of residence from the Government of its country or specified territory and furnish such other prescribed documents and informationCorrect
  2. BObtain a certificate of Indian residential status from the Assessing Officer
  3. CHold at least 26% shareholding by an Indian resident
  4. DFile an advance ruling application before every claim

Explanation

Section 159(8) requires a non-resident assessee to obtain a residence certificate from the Government of that country or specified territory and to provide other prescribed documents and information. An Indian residence certificate or shareholding condition is not in the section.

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