Amendment of section 90
21. In section 90 of the Income-tax Act,—
(a) sub-section (2A) shall be omitted;
(b) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2016, namely:—
“(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.”;
(c) after sub-section (4) and before Explanation 1, the following sub-section shall be inserted, namely:—
“(5) The certificate of being a resident in a country outside India or specified territory outside India, as the case may be, referred to in sub-section (4), shall be necessary but not a sufficient condition for claiming any relief under the agreement referred to therein.”.
Notes on Clauses:
Clause 21 of the Bill seeks to amend section 90 of the Incometax Act relating to agreement with foreign countries or specified territories.
The existing provisions of the aforesaid section 90 confers power upon the Central Government to enter into an agreement with the Government of any specified territory outside India in addition to entering into agreement with foreign countries.
It is proposed to omit sub-section (2A) of the said section.
This amendment will take effect retrospectively from 1st April, 2013.
It is proposed to insert a new sub-section (2A) in the aforesaid section 90 so as to provide that the provisions of newly inserted Chapter X-A shall apply even if such provisions are not beneficial to the assessee.
This amendment will take effect from 1st April, 2016 and will accordingly apply, in relation to assessment year 2016-17 and subsequent assessment years.
It is also proposed to insert a new sub-section (5) in the aforesaid section 90 so as to provide that the certificate of being a resident in a country outside India or specified territory outside India, as the case may be, referred to in sub-section (4), shall be necessary but not a sufficient condition for claiming any relief under the agreement referred to therein.
This amendment will take effect retrospectively from 1st April, 2013 and will accordingly apply, in relation to the assessment year 2013-14 and subsequent assessment years.
