Tax Treaty Benefits Under Income-tax Act

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Question:

The Income-tax Act applies to the assessee unless what condition is fulfilled based on Agreement with Foreign Countries Sec 90 Bilateral Relief - 2? Question 17Answer a. The agreement's provisions are more beneficial to the assessee b. The agreement has been in place for over five years c. The act solely applies on domestic income d. There is a uniform tax policy followed by all involved nations

Answer:

The correct answer is:

a. The agreement's provisions are more beneficial to the assessee

Under Section 90 of the Income-tax Act, an assessee can opt for the provisions of a tax treaty with a foreign country if those provisions are more beneficial than the provisions of the Income-tax Act.