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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 tax treaty entered into by the Central Government. Which of the following must the assessee obtain for this purpose?

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

  1. AA certificate of being a resident of the other country or specified territory, obtained from the Government of that country or specified territoryCorrect
  2. BA no-objection certificate from the Indian Revenue Secretary
  3. CA certificate of Indian residential status issued by the Assessing Officer
  4. DA bank certificate showing remittance of tax abroad

Explanation

Section 159(8) says a non-resident can claim treaty relief only when he obtains a certificate of residence from the Government of the other country or specified territory and also provides such other prescribed documents and information. The other options are not the statutory requirement.

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