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CMA Final · Direct Tax Laws and International Taxation · Double Taxation Avoidance Agreements (DTAA)

Under the Income-tax Act, 2025, a non-resident assessee wants to claim relief under a notified double taxation avoidance agreement. Which condition must be met before the relief can be claimed?

The non-resident must obtain a certificate of residence from the Government of the other country or specified territory and furnish the other prescribed documents and information. Without both, treaty relief cannot be claimed under the Act.

  1. AA certificate of residence obtained from the Government of the other country or specified territory, along with prescribed documents and informationCorrect
  2. BA certificate of residence issued by the Indian Assessing Officer, with no other documents
  3. CA prior advance ruling from the Authority for Advance Rulings in every case
  4. DA declaration that the assessee has no income chargeable to tax in the other country

Explanation

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

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