Skip to content

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

Under the Income-tax Act, 2025, where a term used in a tax agreement is defined neither in the agreement nor in the Act, nor in any notification issued by the Central Government for the purpose, how is the term to be understood?

Such a term takes the meaning given in any Central Government Act related to taxes, and otherwise in any other Central law, unless the context requires differently. It is deemed effective from the date the agreement came into force.

  1. AAs defined in the OECD Model Convention commentary
  2. BAs given in any Act of the Central Government related to taxes, and in any other case in any other Central law, unless the context requires otherwiseCorrect
  3. CAs the Assessing Officer decides in each case
  4. DAs defined in the law of the other contracting country

Explanation

Section 159(7)(c) provides that such an undefined term takes the meaning in any Central Act related to taxes, and in any other case in any other Central law, unless the context otherwise requires, with effect from the date the agreement came into force. The other options are not provided in the section.

Did you get it right without looking?

One question tells you little. A timed set on Double Taxation Avoidance Agreements (DTAA) shows your real accuracy, how long you take and where you lose marks.

Practise Double Taxation Avoidance Agreements (DTAA)Free diagnostic mock

More Double Taxation Avoidance Agreements (DTAA) questions