Self-Declaration of info Allowed for Double Taxation Relief

The finance ministry on Tuesday allowed foreign investors the flexibility to make self-declaration of information that their home countries do not certify for seeking benefits under double tax-avoidance agreements with India.

The Central Board of Direct Taxes (CBDT) has notified a set of information requirements that could be declared by foreign investors in a specified form for availing treaty benefits.

In the 2002 Finance Act, the government had insisted that investors furnish a tax-residency certificate (TRC) from their home country governments containing all the information that India wants. This requirement, however, was eased early this year, making it sufficient to give the TRC in the format issued by various governments. India also made it clear that any further details it wants can be furnished by the investor


As per CBDT’s notification on Tuesday, the status of a foreign investor as an individual or as an incorporated entity, a tax identification number or any other identification number, nationality or place of incorporation and duration of tax residence could be declared by the investor if these are

not part of the TRC issued by the investor’s home country. The investor shall keep and maintain such documents as are necessary to substantiate the information given as self-declaration, the notification also said.

Financial Express, New Delhi, 07-08-2013

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