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

Ravi Textiles, a resident Indian firm, needs a certificate of residence to claim relief under a tax agreement in a foreign country for the relevant tax year. Under the Income-tax Rules, 2026, what is the correct procedure?

A resident applies in Form No. 42 to the Assessing Officer. If satisfied, the Assessing Officer issues the certificate of residence in Form No. 43. Form No. 41 is not used here, as it relates to documents furnished by a non-resident claiming relief.

  1. AApply in Form No. 41 to the Central Government, which issues Form No. 42
  2. BApply in Form No. 42 to the Assessing Officer, who on being satisfied issues the certificate in Form No. 43Correct
  3. CApply in Form No. 43 to the Assessing Officer, who issues Form No. 41
  4. DApply in Form No. 42 to the foreign tax authority, which issues Form No. 43

Explanation

Rule 75(3) and (4) require a resident to apply in Form No. 42 to the Assessing Officer, who on being satisfied issues the certificate of residence in Form No. 43. Form No. 41 is the form for non-resident claimants' documents and information, so options A and C mix up the forms.

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