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CA Final · Direct Tax Laws & International Taxation · Double Taxation Relief

Zenith Overseas Inc., a non-resident, claims relief under a tax agreement for the relevant tax year. Its Indian tax counsel states the following about the assessee's duties under the Income-tax Rules, 2026. Which statement is correct?

The assessee must keep and maintain the documents needed to substantiate the information given in Form No. 41, and the income-tax authority may call for those documents to verify the relief claim. There is no threshold exempting small claims from this duty.

  1. AForm No. 41 information need not be supported by any documents
  2. BThe assessee must keep documents substantiating Form No. 41 information, and the income-tax authority may call for them to verify the claimCorrect
  3. COnly the Assessing Officer may maintain such documents
  4. DDocuments need be kept only if the relief exceeds the tax payable in India

Explanation

Rule 75(2) requires the assessee to keep and maintain documents necessary to substantiate the information in Form No. 41, and allows the income-tax authority to call for them to verify the relief claim. There is no exemption based on the amount of relief.

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