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

Mr Hans, a tax resident of Germany and not a resident of India, earns fees from an Indian client and wishes to claim relief under the India-Germany agreement entered into under section 159(1). Which set of conditions must he satisfy under section 159(8) and the Income-tax Rules, 2026?

Mr Hans must obtain a certificate of residence from the Government of Germany and provide the prescribed documents and information, which Rule 75(1) specifies as Form No. 41. Forms 42 and 43 concern Indian residents seeking a residence certificate from the Assessing Officer, so they are not applicable to him.

  1. AHe must obtain a certificate of residence from the Government of Germany and provide the prescribed documents and information, in Form No. 41Correct
  2. BHe must obtain a certificate of residence from the Indian Assessing Officer in Form No. 43
  3. CHe needs only a self-declaration of residence, with no documents
  4. DHe must file Form No. 42 with the Assessing Officer in India

Explanation

Section 159(8) requires a non-resident to obtain a certificate of residence from the Government of his country and to provide other prescribed documents and information. Rule 75(1) prescribes Form No. 41 for this. Forms 42 and 43 relate to a resident in India obtaining a certificate of residence from the Assessing Officer, so options B and D apply to the wrong person.

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