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CS Professional · Advanced Direct Tax Laws and Practice · Double Taxation Avoidance Agreement (DTAA)

Mr. Arjun, a non-resident, wants to claim relief under an Indian tax treaty for income received from Indian Ltd. Under section 159 of the Income-tax Act, 2025, which condition must he meet to claim treaty relief?

A non-resident claiming treaty relief must hold a residence certificate issued by the government of his country or specified territory, and must also give the other documents and information prescribed. Without both, relief under the agreement cannot be claimed.

  1. AObtain a certificate of residence from the Government of his country or specified territory and furnish other prescribed documents and informationCorrect
  2. BObtain a certificate from the Indian Assessing Officer confirming that he is a non-resident
  3. CFile an Indian return only after the relief has been granted by the treaty partner
  4. DHold shares in an Indian company for at least twelve months

Explanation

Section 159(8) requires a non-resident to get a residence certificate from the government of the relevant country or territory and to provide other prescribed documents and information. An Indian officer's certificate is not what the provision requires.

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