Agreement with foreign countries or specified territories - Section 90

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..... ment, or for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country or specified territory, as the case may be, without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in the said agreement for the indirect benefit to residents of any other country or territory), or Accordingly the CG has notified that where such an agreement provides that any income of a resident of India may be taxed in the other country then, such income shall be included in his total income chargeable to tax in India in accordance with the provisions of Income Tax Act .....

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..... ulars Meaning of the term 1 Term used in any DTAA with a foreign country or specified territory and not defined in the agreement or the Act but assigned a meaning in the notification issued by the CG in the official Gazette, which is still in force The term shall have the meaning assigned in the said notification and the meaning shall be deemed to have effect from the date on which DTAA came into force. 2. Term used in any DTAA with a foreign country or specified territory, which is defined in the DTAA itself. The term shall have the same meaning assigned to it in the DTAA. 3. Term .....

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..... f taxing right between the residence and the source state. The computation mechanism is usually not provided under DTAA and the same is governed by the domestic tax law of each country. In case of any conflict between the provisions of the DTAA and Income Tax Act, 1961, the provisions of the STAA would prevail over the act in view of the provisions of section 90(2), to the extent they are more beneficial to the assessee. [ CIT v. P.V.A.L. Kulandagan Chettiar 2004 (5) TMI 8 - SC ] Notes:- A certificate issued by the Government of a foreign country would constitute proof of tax residency without any further conditions regarding furnishing of Prescribed Particulars therein. In addition to such certificate issued by the for .....

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