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

Under the Income-tax Act, 2025, a non-resident assessee wants to claim relief under a notified agreement. Which condition must he satisfy for the claim?

A non-resident must obtain a certificate of residence from the Government of the relevant country or specified territory and also provide such other documents and information as are prescribed. Without both, treaty relief cannot be claimed under section 159(8) of the Income-tax Act, 2025.

  1. AHe must obtain a certificate of his residence from the Government of the other country or specified territory and furnish the prescribed documents and informationCorrect
  2. BHe must obtain a no-objection certificate from the Indian Central Government and a tax audit report
  3. CHe must be a resident of India for at least 182 days in the tax year
  4. DHe must have paid tax in India at the maximum marginal rate

Explanation

Section 159(8) allows a non-resident to claim treaty relief only when a certificate of residence is obtained from the Government of that country or specified territory and the prescribed documents and information are provided. The other options impose conditions not found in the section.

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