Skip to content

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

Lotus Holdings Inc., a non-resident, claims relief under a tax agreement and files Form No. 41 with its documents. The Assessing Officer doubts the claim. Under the Income-tax Rules, 2026, which statement is correct?

The assessee must keep and maintain the documents needed to substantiate what is stated in Form No. 41, and the income-tax authority may call for them to verify the relief claim. Filing the form does not make the claim conclusive, and no monetary threshold limits this power.

  1. AThe assessee must keep and maintain documents needed to substantiate the information in Form No. 41, and the income-tax authority may call for them to verify the claimCorrect
  2. BThe assessee need not keep any documents once Form No. 41 is filed, as the form is conclusive
  3. COnly the certificate of residence need be kept, and the authority cannot call for any other document
  4. DThe authority may call for documents only if the claim exceeds a monetary limit fixed by the Rules

Explanation

Rule 75(2) requires the assessee to keep and maintain the documents necessary to substantiate the information in Form No. 41. It also allows the income-tax authority to call for those documents to verify the claim. Option B is wrong because the form is not conclusive, and no monetary limit appears in the rule.

Did you get it right without looking?

One question tells you little. A timed set on Double Taxation Relief shows your real accuracy, how long you take and where you lose marks.

Practise Double Taxation ReliefFree diagnostic mock

More Double Taxation Relief questions