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CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion

Nirmala Inc., a non-resident, wants relief under an Indian tax treaty for income from India. Per Section 159(8) of the Income-tax Act, 2025, which condition must be met to claim the relief?

A non-resident can claim treaty relief only if she obtains a certificate of residence from the Government of the relevant country or specified territory and also provides the other documents and information that are prescribed. A self-declaration or advance ruling is not what the section requires.

  1. AShe must obtain a certificate of residence from the Government of the other country or specified territory and furnish such other prescribed documents and informationCorrect
  2. BShe need only file a declaration of residence with the Indian bank
  3. CShe must get an advance ruling before every claim
  4. DNo condition applies if the treaty rate is lower than the domestic rate

Explanation

Section 159(8) permits a non-resident assessee to claim treaty relief only when a certificate of residence is obtained from the Government of that country or specified territory and the other prescribed documents and information are provided. A self-declaration or an advance ruling is not the stated requirement.

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