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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 wants to claim relief under a tax treaty entered into by the Central Government. Which of the following is a condition for claiming that relief?

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. No Indian NOC, prior-year tax payment or permanent establishment is required.

  1. AObtaining a certificate of residence from the Government of the other country or specified territory, along with prescribed documents and informationCorrect
  2. BObtaining a no-objection certificate from the Indian Assessing Officer before filing the return
  3. CHaving paid tax in India on the same income for at least three preceding tax years
  4. DHaving a permanent establishment in India during the tax year

Explanation

Section 159(8) allows a non-resident assessee 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 are conditions that the section does not impose.

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