CA Final · Direct Tax Laws & International Taxation · Double Taxation Relief
A tax agreement between India and Country Z uses the term 'fiscal domicile' without defining it. The Income-tax Act, 2025 does not define it, and no notification defines it. Under the Income-tax Act, 2025, which meaning applies for the relevant tax year, unless the context otherwise requires?
The term takes the meaning given in any Central Government Act related to taxes, and if none, in any other Central Government law, unless context otherwise requires. This applies because the term is undefined in the agreement, the Act and any notification, and it is deemed effective from the agreement's start date.
- AThe meaning given in the law of Country Z
- BThe meaning in any Central Government Act related to taxes, and in any other case in any other law of the Central GovernmentCorrect
- CThe meaning chosen by the Assessing Officer in each case
- DThe meaning in the OECD commentary
Explanation
Under section 159(7)(c), a term used in the agreement but not defined in the agreement, the Act or any notification takes the meaning given in any Central Government Act related to taxes, and otherwise in any other Central Government law, deemed effective from the agreement's commencement date. Foreign law, the AO's discretion and OECD commentary are not the statutory fallback.
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