India - Income Tax Act 2010 - Saarc

1.525 CH. IX - DOUBLE TAXATION RELIEF S. 90CHAPTER IXDOUBLE TAXATION RELIEF13[Agreement with foreign countries or specified territories.1490. (1) The Central Government may enter into an agreement with the Governmentof any country outside India or specified territory outside India,—(a) for the granting of relief in respect of—(i) income on which have been paid both income-tax under this Actand income-tax in that country or specified territory, as the casemay be, or13. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009. Prior to its substitution,section 90, as amended by the Finance Act, 1972, w.e.f. 1-4-1972, Finance (No. 2) Act, 1991,w.r.e.f. 1-4-1972, Finance Act, 2001, w.r.e.f. 1-4-1962, Finance Act, 2003, w.e.f.1-4-2004 and Finance (No. 2) Act, 2004, w.r.e.f. 1-4-1962, read as under :“90. Agreement with foreign countries.—(1) The Central Government may enter into anagreement with the Government of any country outside India—(a) for the granting of relief in respect of—(i) income on which have been paid both income-tax under this Act and incometaxin that country; or(ii) income-tax chargeable under this Act and under the corresponding law inforce in that country to promote mutual economic relations, trade andinvestment, or(b) for the avoidance of double taxation of income under this Act and under thecorresponding law in force in that country, or(c) for exchange of information for the prevention of evasion or avoidance of incometaxchargeable under this Act or under the corresponding law in force in thatcountry, or investigation of cases of such evasion or avoidance, or(d) for recovery of income-tax under this Act and under the corresponding law in forcein that country,and may, by notification in the Official Gazette, make such provisions as may be necessaryfor implementing the agreement.(2) Where the Central Government has entered into an agreement with the Governmentof any country outside India under sub-section (1) for granting relief of tax, or as the casemay be, avoidance of double taxation, then, in relation to the assessee to whom suchagreement applies, the provisions of this Act shall apply to the extent they are morebeneficial to that assessee.(3) Any term used but not defined in this Act or in the agreement referred to in sub-section(1) shall, unless the context otherwise requires, and is not inconsistent with the provisionsof this Act or the agreement, have the same meaning as assigned to it in the notificationissued by the Central Government in the Official Gazette in this behalf.Explanation.—For the removal of doubts, it is hereby declared that the charge of tax inrespect of a foreign company at a rate higher than the rate at which a domestic companyis chargeable, shall not be regarded as less favourable charge or levy of tax in respect ofsuch foreign company.”14. For notified agreements for avoidance of double taxation, refer Taxmann’s Direct TaxesCirculars and Taxmann’s Yearly Tax Digest & Referencer.See also Circular No. 333, dated 2-4-1982, Circular No. 638, dated 28-10-1992, Circular No.659, dated 8-9-1993, Circular No. 682, dated 30-3-1994, Circular No. 789, dated13-4-2000, Circular No. 1/2003, dated 10-2-2003, Instruction No. 3/2004, dated19-3-2004, Instruction No. 10/2007, dated 23-10-2007, Instruction No. 7/2008, dated24-6-2008 and Notification No. 2123(E), dated 28-8-2008. For details, see Taxmann’sMaster Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.See also rules 44G & 44H & Form No. 34F.