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What is Adoption by Central Government of agreement between specified associations for double taxation relief? Section 90A of Income Tax Act 1961

Adoption by Central Government of agreement between specified associations for double taxation relief is defined under section 90A of Income Tax Act 1961. Provisions under this Section is:

Section 90A of Income Tax Act "Adoption by Central Government of agreement between specified associations for double taxation relief"

Section 90A. (1) Any specified association in India may enter into an agreement with any specified association in the specified territory outside India and the Central Government may, by notification in the Official Gazette, make such provisions as may be necessary for adopting and implementing such agreement-

(a) for the granting of relief in respect of-
(i) income on which have been paid both income-tax under this Act and income-tax in any specified territory outside India; or
(ii) income-tax chargeable under this Act and under the corresponding law in force in that specified territory outside India to promote mutual economic relations, trade and investment, or

(b) for the avoidance of double taxation of income under this Act and under the corresponding law in force in that specified territory outside India, or

 

(c) for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under this Act or under the corresponding law in force in that specified territory outside India, 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 force in that specified territory outside India.

(2) Where a specified association in India has entered into an agreement with a specified association of any specified territory outside India under sub-section (1) and such agreement has been notified under that sub-section, for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall apply to the extent they are more beneficial to that assessee.
(2A) [-]

Following sub-section (2A) shall be inserted after sub-section (2) of section 90A by the Finance Act, 2013, w.e.f. 1-4-2016 :
(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter X-A of the Act shall apply to the assessee even if such provisions are not beneficial to him.
(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 provisions of this Act or the agreement, have the same meaning as assigned to it in the notification issued by the Central Government in the Official Gazette in this behalf.
(4) An assessee, not being a resident, to whom the agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless 35[a certificate36 of his being a resident] in any specified territory outside India, is obtained by him from the Government of that specified territory.
37[(5) The assessee referred to in sub-section (4) shall also provide such other documents and information, as may be prescribed38.]
Explanation 1.-For the removal of doubts, it is hereby declared that the charge of tax in respect of a company incorporated in the specified territory outside India at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such company.
Explanation 2.-For the purposes of this section, the expressions-
(a) "specified association" means any institution, association or body, whether incorporated or not, functioning under any law for the time being in force in India or the laws of the specified territory outside India and which may be notified as such by the Central Government for the purposes of this section;
(b) "specified territory" means any area outside India which may be notified as such by the Central Government for the purposes of this section.
Explanation 3.-For the removal of doubts, it is hereby declared that where any term is used in any agreement entered into under sub-section (1) and not defined under the said agreement or the Act, but is assigned a meaning to it in the notification issued under sub-section (3) and the notification issued there-under being in force, then, the meaning assigned to such term shall be deemed to have effect from the date on which the said agreement came into force.

Income Tax Act 1961

What is Share of member of an association of persons or body of individuals in the income of the association or body? Section 86 of Income Tax Act 1961

What is Rebate to be allowed in computing income-tax Rebate of income-tax in case of certain individuals? Section 87 and 87A of Income Tax Act 1961

What is Rebate on life insurance premia, contribution to provident fund, etc? Section 88 of Income Tax Act 1961

What is Rebate in respect of securities transaction tax? Section 88E of Income Tax Act 1961

What is Relief when salary, etc., is paid in arrears or in advance? Section 89 of Income Tax Act 1961

What is Agreement with foreign countries or specified territories? Section 90 of Income Tax Act 1961

What is Adoption by Central Government of agreement between specified associations for double taxation relief? Section 90A of Income Tax Act 1961

What is Countries with which no agreement exists? Section 91 of Income Tax Act 1961

What is Computation of income from international transaction having regard to arm's length price? Section 92 of Income Tax Act 1961

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