Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 24th April, 2015
Claim of treaty benefits by Foreign Institutional Investors under the provisions of Double Taxation Avoidance Agreements
It has come to the notice of the Board that several Foreign Institutional Investors 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.
2. Since the issue involved in such cases is limited, such claims should be decided 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.
3. The officers concerned have been directed accordingly.
(Rekha Shukla) Commissioner of Income-tax
(Media and Technical Policy)
Official Spokesperson, CBDT