58. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009. Prior to its substitution, section 90, as amended by the Finance Act, 1972, w.e.f. 1-4-1972, Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1972, Finance Act, 2001, w.r.e.f. 1-4-1962, Finance Act, 2003, w.e.f. 1-4-2004 and Finance (No. 2) Act, 2004, w.r.e.f. 1-4-1962, read as under :

“90. Agreement with foreign countries.—(1) The Central Government may enter into an agreement with the Government of any country outside India—

(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 that country; or

(ii) income-tax chargeable under this Act and under the corresponding law in force in that country 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

(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 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 country,

and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement.

(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.

(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.

Explanation.—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.”

59. For notified agreements for avoidance of double taxation, refer Taxmann’s Direct Taxes Circulars and Taxmann’s Yearly Tax Digest & Referencer.

See also Circular No. 333, dated 2-4-1982, Circular No. 638, dated 28-10-1992, Circular No. 659, dated 8-9-1993, Circular No. 682, dated 30-3-1994, Circular No. 789, dated 13-4-2000, Circular No. 1/2003, dated 10-2-2003, Instruction No. 3/2004, dated 19-3-2004, Instruction No. 10/2007, dated 23-10-2007, Instruction No. 7/2008, dated 24-6-2008, Notification No. 2123(E), dated 28-8-2008, Instruction No. 1/2013, dated 17-1-2013 and Press Release, dated 1-3-2013. For details, see Taxmann’s Master Guide to Income-tax Act.

For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.

See also rules 44G & 44H & Form No. 34F.

60. Omitted by the Finance Act, 2013, w.e.f. 1-4-2013. Prior to its omission, sub-section (2A), as inserted by the Finance Act, 2012, w.e.f. 1-4-2013, read as under :

“(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.”

61. Inserted by the Finance Act, 2012, w.e.f. 1-4-2013.

62. Substituted for “a certificate, containing such particulars as may be prescribed, of his being a resident” by the Finance Act, 2013, w.e.f. 1-4-2013.

62a. See rule 21AB(3) and (4) and Form Nos. 10FA and 10FB.

63. Inserted by the Finance Act, 2013, w.e.f. 1-4-2013.

63a. See rule 21AB(1) to (2A) and Form No. 10F.

64. For specified territories, see Taxmann’s Master Guide to Income-tax Act.

65. Inserted by the Finance Act, 2012, w.r.e.f. 1-10-2009.