Skip to content

CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion

Lisa Chen, a non-resident, wishes to claim relief for income earned in India under a notified agreement under section 159 of the Income-tax Act, 2025. Which of the following is a condition for her to claim relief?

A non-resident assessee can claim treaty relief only if she obtains a certificate of her residence from the Government of her country or specified territory and also provides such other documents and information as are prescribed, as required by section 159(8) of the Income-tax Act, 2025.

  1. AShe must obtain a certificate of residence from the Government of her country or specified territory and provide other prescribed documents and informationCorrect
  2. BShe must have a permanent establishment in India
  3. CShe must obtain an advance ruling before claiming the relief
  4. DShe must file her return of income before the end of the financial year

Explanation

Section 159(8) states that a non-resident can claim relief under an agreement only when a certificate of residence is obtained from the Government of that country or specified territory and the prescribed documents and information are provided. The other conditions do not appear in the section.

Did you get it right without looking?

One question tells you little. A timed set on Tax Planning, Tax Avoidance and Tax Evasion shows your real accuracy, how long you take and where you lose marks.

Practise Tax Planning, Tax Avoidance and Tax EvasionFree diagnostic mock

More Tax Planning, Tax Avoidance and Tax Evasion questions