Income Tax Act, 1961
Section 4: Ins. by Act 33 of 2009, s. 39 (w.e.f. 12010).
4. Ins. by Act 33 of 2009, s. 39 (w.e.f. 12010).
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89A. [Tax relief in relation to export turnover].—Omitted by the Finance Act, 1983 (11 of 1983),
s. 33 (w.e.f. 11983). The provisions of this section were later substituted by scheme contained in
section 80HHC, inserted by the Finance Act, 1983 (11 of 1983), s. 24 (w.e.f. 11983). Originally section
89A was inserted by the Finance Act, 1982 (29 of 1983), s. 22 (w.e.f. 11982).
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. Subs. by Act 33 of 2009, s. 40, for section 90 (w.e.f. 12009). Earlier section amended by Act 16 of 1972, s. 23
(w.e.f. 11972). Further amended by Act 49 of 1991, s. 39 (w.e.f. 11972). Earlier substituted by Act 14 of 2001, s. 90
(w.e.f. 11962).
2. Ins. by Act 17 of 2013, s. 23 (w.e.f. 12016). Earlier inserted by Act 23 of 2012, s. 33 (w.e.f. 12013), and later on
omitted by Act 17 of 2013, s. 23 (w.e.f. 12013).
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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.]
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
The Central Government may
enter into an agreement with the Government of any country outside India or specified territory outside
India,—
for the granting of relief in respect of—
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
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
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
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
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.
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
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[
Notwithstanding anything contained in sub-section
Any term used but not defined in this Act or in the agreement referred to in sub-section
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. Subs. by Act 33 of 2009, s. 40, for section 90 (w.e.f. 12009). Earlier section amended by Act 16 of 1972, s. 23
(w.e.f. 11972). Further amended by Act 49 of 1991, s. 39 (w.e.f. 11972). Earlier substituted by Act 14 of 2001, s. 90
(w.e.f. 11962).
2. Ins. by Act 17 of 2013, s. 23 (w.e.f. 12016). Earlier inserted by Act 23 of 2012, s. 33 (w.e.f. 12013), and later on
omitted by Act 17 of 2013, s. 23 (w.e.f. 12013).
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1[
An assessee, not being a resident, to whom an agreement referred to in sub-section
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[
The assessee referred to in sub-section
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
and not defined under the said agreement or the Act, but is
assigned a meaning to it in the notification issued under sub-section
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
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[90A. Adoption by Central Government of agreement between specified associations for double
taxation relief.—
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—
for the granting of relief in respect of—
income on which have been paid both income-tax under this Act and income-tax in any
specified territory outside India; or
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
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
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