Agreement with foreign countries or specified territories

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....e 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, ^17[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 country or specified territory, as ....

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.... under such agreement unless ^14[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.] ^15[(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....

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.... (b) with the Government of any country outside India for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country ; and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement." 2.  Numbered vide Section 39 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1972 3.  Substituted vide Section 49 of the Finance Act, 2003 w.e.f. 01-04-2004 before it was read as,  "(a) 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" 4.  Inserted vide Section 39 of the Finance (No. 2) Act, 199....

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....estigation 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, and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement.] ^4[(2) Where the Central Government has entered into an agreement with the Government of any country outside India 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.] ^5[(3) Any term used but not defined in this Act or ....