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Commerce · Q631

Income Tax and Corporate Tax

Graduate and Post Graduate · Commerce · question 631

Q631

Which of the following statements reflects the incorrect position?

A.
Domestic tax laws are irrelevant while considering application of the provisions of a DTAA
Answer
B.
Provisions of Income Tax Act, 1961 empower the Union Government to enter into tax treaties for relieving double taxation
C.
Provisions of a DTAA overrides the provisions of domestic laws unless the latter are more beneficial for a taxpayer
D.
In the absence of a DTAA, domestic tax laws provide unilateral relief to tackle double taxation

Answer: Option A

Solution

Answer: Option A
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