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CMA Final · Direct Tax Laws and International Taxation · Assessment of Mutual Associations

Under the Income-tax Act, 2025, for the purpose of granting an agreement-based relief, a 'specified association' means an institution, association or body, whether incorporated or not, which functions under a law in force in India or the laws of the specified territory and which:

A specified association is any body, incorporated or not, functioning under a law in force in India or a specified territory, which the Central Government has notified as such for the purposes of the section. Incorporation, charitable registration or non-resident membership is not required.

  1. AHas been notified as such by the Central Government for the purposes of the sectionCorrect
  2. BIs registered as a charitable trust with the Principal Commissioner
  3. CHas at least one member who is a non-resident
  4. DIs incorporated as a company under the Companies Act, 2013

Explanation

The definition in section 159(9)(a) requires that the body functions under a law in force in India or in the specified territory and be notified by the Central Government. Incorporation is not needed, since the definition covers bodies 'whether incorporated or not'. Hence the company-incorporation option is wrong.

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