CS Professional · Advanced Direct Tax Laws and Practice · Double Taxation Avoidance Agreement (DTAA)
A non-resident company, Alpha Inc., wishes to claim relief under a notified treaty on income arising in India. Which statement is correct under section 159 of the Income-tax Act, 2025?
A non-resident assessee must obtain a certificate of residence from the Government of its country or territory and also provide the other prescribed documents and information. Without both conditions, treaty relief under section 159 cannot be claimed, and a self-declaration does not suffice.
- AA tax residency certificate is needed only if the income exceeds the prescribed limit
- BRelief is available on a self-declaration of residence, with no certificate needed
- CA certificate of residence from the Government of its country is required, along with other prescribed documents and informationCorrect
- DOnly a certificate is needed, and no other documents can be required
Explanation
Section 159(8) permits a non-resident to claim treaty relief only when he has obtained a certificate of residence from the Government of that country or territory and provides such other documents and information as are prescribed. A self-declaration is not enough. No income threshold is mentioned. The certificate alone is also insufficient where documents are prescribed.
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