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CS Professional · Advanced Direct Tax Laws and Practice · Double Taxation Avoidance Agreement (DTAA)

Under the Income-tax Act, 2025 (applicable from the June 2027 session), a non-resident assessee wishes to claim relief under a notified tax treaty. Which of the following is a condition for claiming that relief under section 159?

A non-resident must obtain a certificate of residence from the Government of the other country or specified territory and furnish the prescribed documents and information. Without these, treaty relief under section 159 cannot be claimed. A 183-day PE test, foreign return filing or prior rulings are not conditions.

  1. AObtaining a certificate of being a resident of the other country or specified territory from that country's Government, along with prescribed documents and informationCorrect
  2. BHaving a permanent establishment in India for at least 183 days in the tax year
  3. CFiling a return of income in the treaty partner country before 31 March
  4. DObtaining a prior ruling from the Central Government approving the treaty claim

Explanation

Section 159(8) says a non-resident can claim treaty relief only when he obtains a residence certificate from the Government of his country or specified territory and furnishes other prescribed documents and information. The other conditions are not mentioned in the section.

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