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

Priya, a non-resident individual of Country Y, wants to claim relief under a notified agreement entered by India under the Income-tax Act, 2025. Which condition must she meet under section 159?

Priya must obtain a certificate of her residence in Country Y from that country's Government and also furnish the other documents and information prescribed. Without both, a non-resident cannot claim relief under the agreement, and a self-declaration or Indian officer's certificate is not sufficient.

  1. AObtain a certificate of her being a resident of Country Y from that country's Government and provide other prescribed documents and informationCorrect
  2. BObtain a certificate from the Indian Assessing Officer that she is a non-resident
  3. CFile only a declaration of residence without any government certificate
  4. DNo condition applies if the agreement defines the terms used

Explanation

Section 159(8) requires a non-resident assessee claiming treaty relief to obtain a residency certificate from the Government of the other country or specified territory and to provide other prescribed documents and information. A self-declaration or an Indian officer's certificate does not meet this. Definition of terms in the agreement is a separate matter under 159(7).

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