law: The Income-Tax Act, 1961
  Chapter IX
  Double Taxation Relief
  1[90. Agreement with foreign countries or specified territories.-
  (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.
  1[(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 2[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.]
  3[(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.
  4[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.]
  5[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.]
  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).
  1. Ins. by Act 23 of 2012, s. 32 (w.e.f. 1-4-2013).
  2. 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).
  3. Ins. by s. 23, ibid. (w.e.f. 1-4-2013).
  4. The Explanation 3 inserted by Act 23 of 2012, s. 32 (w.e.f. 1-10-2009).
  5. Ins. by Act 7 of 2017, s. 39 (w.e.f. 1-4-2018).
  6[90A. Adoption by Central Government of agreement between specified associations for double taxation relief.-
  (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.
  1[(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter XA 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.
  2[(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 3[a certificate of his being a resident] in any specified territory outside India, is obtained by him from the Government of that specified territory.]
  4[(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 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.
  5[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.]
  1[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.]
  6. Ins. by Act 21 of 2006, s. 20 (w.e.f. 1-6-2006).
  1. Ins. by Act 17 of 2013, s. 24 (w.e.f. 1-4-2016). Earlier sub-section (2A) was inserted by Act 23 of 2012, s. 33 (w.e.f. 1-4-2013) and later omitted by Act 17 of 2013, s. 24 (w.e.f. 1-4-2013).
  2. Ins. by Act 23 of 2012, s. 33 (w.e.f. 1-4-2013).
  3. Subs. by Act 17 of 2013, s. 24, for "a certificate, containing such particulars as may be prescribed, of his being a resident" (w.e.f. 1-4-2013).
  4. Ins. by s. 24, ibid. (w.e.f. 1-4-2013).
  5. Ins. by Act 23 of 2012, s. 33 (w.e.f. 1-6-2006).
  1. Ins. by Act 7 of 2017, s. 40 (w.e.f. 1-4-2018).