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CS Professional · Advanced Direct Tax Laws and Practice · Double Taxation Avoidance Agreement (DTAA)

Under section 159 of the Income-tax Act, 2025, which body may enter into an agreement with a specified association in a specified territory for double taxation relief, with the Central Government then notifying provisions to adopt and implement it?

A specified association in India may enter into the agreement with a specified association in the specified territory. The Central Government then notifies the provisions needed to adopt and implement it. States, individual companies or SEBI are not given this role under section 159(2).

  1. AAny specified association in IndiaCorrect
  2. BAny State Government in India
  3. CAny resident company in India
  4. DThe Securities and Exchange Board of India only

Explanation

Section 159(2) lets any specified association in India enter into an agreement with a specified association in the specified territory. The Central Government then notifies provisions needed to adopt and implement it. The agreement is not made by States, companies or SEBI under this sub-section.

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