Section90A,IncometaxAct,19612015

56[Adoption by Central Government of agreement between specified associations for double

taxationrelief.
90A.(1)AnyspecifiedassociationinIndiamayenterintoanagreementwithanyspecifiedassociation
in the specified territory57 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) forthegrantingofreliefinrespectof
(i) incomeonwhichhavebeenpaidbothincometaxunderthisActandincometaxin
anyspecifiedterritoryoutsideIndiaor
(ii) incometax chargeable under this Act and under the corresponding law in force in
thatspecifiedterritoryoutsideIndiatopromotemutualeconomicrelations,tradeand
investment,or
(b) fortheavoidanceofdoubletaxationofincomeunderthisActandunderthecorresponding
lawinforceinthatspecifiedterritoryoutsideIndia,or
(c) for exchange of information for the prevention of evasion or avoidance of incometax
chargeableunderthisActorunderthecorrespondinglawinforceinthatspecifiedterritory
outsideIndia,orinvestigationofcasesofsuchevasionoravoidance,or
(d) forrecoveryofincometaxunderthisActandunderthecorrespondinglawinforceinthat
specifiedterritoryoutsideIndia.
(2)WhereaspecifiedassociationinIndiahasenteredintoanagreementwithaspecifiedassociationof
anyspecifiedterritoryoutsideIndiaundersubsection(1)andsuchagreementhasbeennotifiedunder
thatsubsection,forgrantingreliefoftax,orasthecasemaybe,avoidanceofdoubletaxation,then,in
relationtotheassesseetowhomsuchagreementapplies,theprovisionsofthisActshallapplytothe
extenttheyaremorebeneficialtothatassessee.
(2A)58[***]
Followingsubsection(2A)shallbeinsertedaftersubsection(2)ofsection90AbytheFinance
Act,2013,w.e.f.142016:
(2A)Notwithstandinganythingcontainedinsubsection(2),theprovisionsofChapterXAoftheAct
shallapplytotheassesseeevenifsuchprovisionsarenotbeneficialtohim.
(3)AnytermusedbutnotdefinedinthisActorintheagreementreferredtoinsubsection(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
GovernmentintheOfficialGazette59inthisbehalf.
60[(4)Anassessee,notbeingaresident,towhomtheagreementreferredtoinsubsection(1)applies,

shallnotbeentitledtoclaimanyreliefundersuchagreementunless 61[acertificate62 of his being a

resident] in any specified territory outside India, is obtained by him from the Government of that
specifiedterritory.]

63[(5)

The assessee referred to in subsection (4) shall also provide such other documents and
information,asmaybeprescribed64.]
Explanation1.Fortheremovalofdoubts,itisherebydeclaredthatthechargeoftaxinrespectofa
companyincorporatedinthespecifiedterritoryoutsideIndiaataratehigherthantherateatwhicha
domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in
respectofsuchcompany.
Explanation2.Forthepurposesofthissection,theexpressions
(a) "specified association" means any institution, association or body, whether incorporated or
not,functioningunderanylawforthetimebeinginforceinIndiaorthelawsofthespecified
territoryoutsideIndiaandwhichmaybenotified64aassuchbytheCentralGovernmentfor
thepurposesofthissection
(b) "specified territory" means any area outside India which may be notified64a as such by the
CentralGovernmentforthepurposesofthissection.]
65[Explanation3.Fortheremovalofdoubts,itisherebydeclaredthatwhereanytermisusedinany

agreemententeredintoundersubsection(1)andnotdefinedunderthesaidagreementortheAct,but
isassignedameaningtoitinthenotificationissuedundersubsection(3)andthenotificationissued
thereunder being in force, then, the meaning assigned to such term shall be deemed to have effect
fromthedateonwhichthesaidagreementcameintoforce.]

56.InsertedbytheFinanceAct,2006,w.e.f.162006.SeealsoInstructionNo.1/2013,dated171
2013andPressRelease,dated132013.
57. For specified association and specified territory, see Taxmann's Master Guide to Incometax
Act.
58.OmittedbytheFinanceAct,2013,w.e.f.142013.Priortoitsomission,subsection(2A),as
insertedbytheFinanceAct,2012,w.e.f.142013,readasunder:
"(2A)Notwithstandinganythingcontainedinsubsection(2),theprovisionsofChapterXAof
theActshallapplytotheassessee,evenifsuchprovisionsarenotbeneficialtohim."
59.Forrelevantnotifications,seeTaxmann'sMasterGuidetoIncometaxAct.
60.InsertedbytheFinanceAct,2012,w.e.f.142013.
61.Substituted for "a certificate, containing such particulars as may be prescribed, of his being a
resident"bytheFinanceAct,2013,w.e.f.142013.SeeRule21ABandFormNos.10FA and
10FBprescribedtherequisitecertificate.
62.Seerule21AB(3)and(4)andFormNos.10FAand10FB.
63.InsertedbytheFinanceAct,2013,w.e.f.142013.
64.Seerule21AB(1)to(2A)andFormNo.10F.
64a.Forspecifiedterritory/association,seeTaxmann'sMasterGuidetoIncometaxAct.
65.InsertedbytheFinanceAct,2012,w.r.e.f.162006.