1(1) The Central Government may enter into an agreement with the Government of 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 Act and income-tax in that country or specified territory, as the case may be, or
(ii) income-tax chargeable under this Act and under the corresponding law in force in that country or specified territory, as the case may be, 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 country or specified territory, as the case may be, 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 country or specified territory, as the case may be, 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 country or specified territory, as the case may be, and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement.
(2) Where the Central Government has entered into an agreement with the
Government of any country outside India or specified territory outside India, as
the case may be, under sub-section (1) 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.
2 (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.
3 (4) An assessee, not being a resident, to whom an agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless 4 a certificate of his being a resident in any country outside India or specified territory outside India, as the case may be, is obtained by him from the Government of that country or specified territory.
5 (5) The assessee referred to in sub-section (4) shall also provide such other documents and information, as may be prescribed.
Explanation 1.-For the removal of doubts, it is hereby declared that the charge of tax in respect of a foreign company 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 foreign company.
Explanation 2.-For the purposes of this section, "specified territory" means any area outside India which may be notified as such by the Central Government.
6 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 thereunder 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.
7 Explanation 4.-For the removal of doubts, it is hereby declared that where
any term used in an agreement entered into under sub-section (1) is defined
under the said agreement, the said term shall have the same meaning as assigned
to it in the agreement; and where the term is not defined in the said agreement,
but defined in the Act, it shall have the same meaning as assigned to it in the
Act and explanation, if any, given to it by the Central Government.
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1. Subs. by Act 33 of 2009, s. 40, for section 90 (w.e.f. 1-10-2009). Earlier
section amended by Act 16 of 1972, s. 23 (w.e.f. 1-4-1972). Further amended by
Act 49 of 1991, s. 39 (w.e.f. 1-4-1972). Earlier substituted by Act 14 of 2001,
s. 90 (w.e.f. 1-4-1962).
2. Ins. by Act 17 of 2013, s. 23 (w.e.f. 1-4-2016). Earlier inserted by Act 23
of 2012, s. 33 (w.e.f. 1-4-2013), and later on omitted by Act 17 of 2013, s. 23
(w.e.f. 1-4-2013).
3. Ins. by Act 23 of 2012, s. 32 (w.e.f. 1-4-2013).
4. Subs. by Act 17 of 2013, s. 23, for "a certificate, containing such
particulars as may be prescribed, of his being a resident" (w.e.f. 1-4-2013).
5. Ins. by s. 23, ibid. (w.e.f. 1-4-2013).
6. The Explanation 3 inserted by Act 23 of 2012, s. 32 (w.e.f. 1-10-2009).
7. Ins. by Act 7 of 2017, s. 39 (w.e.f. 1-4-2018).
Section 87 Rebate to be allowed in computing income-tax
Section 87A Rebate of income-tax in case of certain individuals
Section 88 Rebate on life insurance premia, contribution to provident fund, etc
Section 88E Rebate in respect of securities transaction tax
Section 89 Relief when salary, etc., is paid in arrears or in advance
Section 90 Agreement with foreign countries or specified territories
Section 91 Countries with which no agreement exists
Section 92 Computation of income from international transaction having regard to arms length price