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CA Final · Direct Tax Laws & International Taxation · Application and Interpretation of Tax Treaties

Ms. Dia, a non-resident from Country Y, wants to claim the benefit of the India–Y tax treaty on interest income earned from an Indian borrower. Under Indian law, which document is mandatorily required to be obtained and furnished by her to claim the treaty benefit?

She must furnish a tax residency certificate issued by Country Y's government, along with Form 10F for prescribed particulars not contained in it. Section 90(4) makes this a condition for claiming treaty benefits, whereas advance rulings, RBI certificates or Indian citizenship documents are not required.

  1. AA tax residency certificate issued by the Government of Country Y, with prescribed particulars in Form 10F where details are not contained in the certificateCorrect
  2. BA certificate of Indian citizenship issued by the Assessing Officer
  3. CAn advance ruling from the Authority for Advance Rulings in every case
  4. DA no-objection certificate from the Reserve Bank of India

Explanation

Section 90(4) requires a non-resident claiming treaty relief to furnish a tax residency certificate from the government of the other country. Form 10F is furnished for prescribed particulars not contained in it. An advance ruling or RBI NOC is not a precondition, so option C is wrong.

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