Section 90A of Income Tax Act "Adoption by Central Government of agreement between specified associations for double taxation relief"
90A. (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
corres-ponding 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, 48[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
(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.
(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.
(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 a
certificate of his being a resident in any specified
territory outside India, is obtained by him from the
Government of that specified territory.
(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.
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.
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.