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CA Final · Direct Tax Laws & International Taxation · Double Taxation Relief

Ananya Traders, a resident Indian firm, needs a certificate of residence to claim benefit under a treaty in a foreign country. Under the Income-tax Rules, 2026, what is the correct procedure?

A resident applies to the Assessing Officer in Form No. 42. If the officer is satisfied, the certificate of residence is issued in Form No. 43. Form No. 41 is not used for this purpose, because it carries the documents and information supplied by non-residents claiming relief.

  1. AApply in Form No. 43 to the Assessing Officer, who issues the certificate in Form No. 42
  2. BApply in Form No. 42 to the Assessing Officer, who on being satisfied issues the certificate in Form No. 43Correct
  3. CApply in Form No. 41 to the Assessing Officer, who issues the certificate in Form No. 42
  4. DObtain the certificate from the foreign tax authority in Form No. 41

Explanation

Rule 75(3) requires a resident in India to apply in Form No. 42 to the Assessing Officer. Under Rule 75(4), the Assessing Officer, once satisfied, issues the certificate in Form No. 43. Option A reverses the forms. Form No. 41 is for non-residents' documents and information.

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