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

Kaveri Exports Pvt. Ltd., an Indian resident company, needs a certificate of residence to claim benefit under a tax agreement entered into by India. As per the Income-tax Rules, 2026, what is the correct procedure?

A resident assessee applies to the Assessing Officer in Form No. 42. If the Assessing Officer is satisfied, the certificate of residence is issued in Form No. 43. Form No. 41 is a different form, used by non-residents to furnish documents and information when claiming treaty relief.

  1. AApply to the Assessing Officer in Form No. 42; on being satisfied, the Assessing Officer issues the certificate in Form No. 43Correct
  2. BApply to the Assessing Officer in Form No. 41; the certificate is issued in Form No. 42
  3. CApply to the foreign tax authority in Form No. 43; the certificate is issued in Form No. 41
  4. DApply to the Central Government in Form No. 43; the certificate is issued in Form No. 42

Explanation

Rule 75(3) requires a resident assessee to apply to the Assessing Officer in Form No. 42. Under Rule 75(4), after being satisfied, the Assessing Officer issues the certificate in Form No. 43. Form No. 41 is the form in which a non-resident gives documents and information to claim relief, so option B mixes up the forms.

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