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CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion

Zenith Holdings Ltd, a non-resident company incorporated in Country X, wishes to claim relief under the India-Country X tax agreement. It holds a tax residency certificate issued by the Government of Country X. Considering section 159 of the Income-tax Act, 2025, which statement is correct?

A non-resident claiming treaty relief must obtain a certificate of residence from the Government of the other country or specified territory and must also provide the other documents and information that are prescribed. The residence certificate alone does not satisfy the requirement.

  1. AA certificate of residence from the Government of Country X is enough, and no other documents or information are needed
  2. BNo certificate is required for a company
  3. CThe assessee must obtain a residence certificate from the Government of that country and also provide such other documents and information as may be prescribedCorrect
  4. DThe certificate must be obtained from the Indian Assessing Officer

Explanation

Section 159(8) requires a non-resident to obtain a certificate of residence from the Government of the other country or specified territory and also to provide such other documents and information as may be prescribed. The certificate alone is not sufficient, so the first option is wrong.

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