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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 condition must be satisfied before the relief can be claimed?

A non-resident can claim treaty relief only if he holds a certificate of residence issued by the government of the treaty country or specified territory and furnishes the other prescribed documents and information. No prior approval of the Assessing Officer or minimum residence history is required by the provision.

  1. AHe must obtain a certificate of residence from the Government of the other country or specified territory and furnish prescribed documents and informationCorrect
  2. BHe must have been a resident in India in at least two of the preceding four tax years
  3. CHe must obtain prior approval of the Assessing Officer in India for each treaty claim
  4. DHe must have paid tax in India on the same income at a rate higher than the treaty rate

Explanation

Section 159(8) allows a non-resident to claim treaty relief only when he obtains a residence certificate from the government of that country or specified territory and provides other prescribed documents and information. The other options add conditions that the section does not contain.

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