It has come to the notice of the Board that several Foreign Institutional Investors (FIIs) receiving income from transactions in securities claim such income as exempt from tax under the Income Tax Act, 1961(‘the Act’) by availing benefit provided in the Double Taxation Avoidance Agreements(‘DTAAs’) signed between India and their respective countries of residence.

Since the issue involved in such cases is limited, such claims should be decided expeditiously. It has therefore been decided that in all cases of Foreign Institutional Investors seeking treaty benefits under the provisions of respective DTAAs, decision may be taken on such claims within one month from the date such claim is filed.

The officers concerned have been directed accordingly.

DTAA claims for FIIs to be decided within one month, streamlining treaty benefit determinations for securities income. Officers must decide Foreign Institutional Investors' treaty benefit claims under the Double Taxation Avoidance Agreements relating to income from securities within one month from the date the claim is filed, as an administrative directive to ensure prompt resolution of DTAA entitlement disputes.