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

Zenith Traders, a non-resident firm, claims relief under a tax treaty that India has signed with its country of residence. It holds a certificate of residence issued by the government of that country. Under section 159(8) of the Income-tax Act, 2025, which additional requirement must it meet before it can claim the treaty relief?

A non-resident claiming treaty relief must, besides the residence certificate from its home government, provide the other prescribed documents and information. Rule 75(1) prescribes this as Form No. 41. Forms 42 and 43 relate only to Indian residents obtaining a residence certificate.

  1. AFurnish such other documents and information as may be prescribed, being Form No. 41 under Rule 75Correct
  2. BObtain a certificate of residence in Form No. 43 from the Indian Assessing Officer
  3. CFile an application in Form No. 42 with the Assessing Officer
  4. DObtain a fresh notification from the Central Government for its country

Explanation

Section 159(8) requires a non-resident to hold a certificate of residence from the government of its country and to provide other prescribed documents and information. Rule 75(1) prescribes Form No. 41 for this. Forms 42 and 43 apply to residents of India who seek a certificate of residence, so they are wrong here.

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