Skip to content

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

Meridian Holdings Ltd, a non-resident company, wants to claim relief under a tax treaty entered into by India under section 159 of the Income-tax Act, 2025. Which condition must it satisfy in order to be entitled to claim the relief?

A non-resident can claim treaty relief only if it holds a residence certificate issued by the Government of its own country or specified territory and furnishes the other prescribed documents and information. Form No. 43 is an Indian certificate for Indian residents and does not satisfy this requirement.

  1. AIt must obtain a certificate of its residence from the Government of the other country or specified territory, and provide the other prescribed documents and informationCorrect
  2. BIt must obtain a certificate of residence from the Assessing Officer in India in Form No. 43
  3. CIt must have paid tax in India at a rate higher than that of a domestic company
  4. DIt must file an application for an advance ruling before claiming any treaty relief

Explanation

Section 159(8) allows a non-resident assessee to claim treaty relief only when it obtains a certificate of residence from the Government of its country or specified territory and provides the other prescribed documents and information. Form No. 43 is issued by the Indian Assessing Officer to residents of India, so that option is wrong for a non-resident.

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