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

Under the Income-tax Act, 2025, an assessee who is not a resident in India wants to claim relief under a tax treaty notified under section 159. Which condition must be met for the claim to be allowed?

A non-resident can claim treaty relief only if he obtains a certificate of residence from the Government of the other country or specified territory and furnishes the other prescribed documents and information. The Act imposes no condition of past tax payment, citizenship or early filing.

  1. AHe must obtain a certificate of residence from the Government of the other country or specified territory and provide the prescribed documents and informationCorrect
  2. BHe must have paid tax in India for at least three earlier tax years
  3. CHe must be a citizen of India holding a foreign passport
  4. DHe must file the return of income within the first month of the tax year

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 furnishes the other prescribed documents and information. The other options add conditions that the section does not contain.

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