Rule 75 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 75 of the Income-tax Rules, 2026 puts the non-resident's treaty information into Form No. 41, and gives a resident a route to a certificate of residence through Form No. 42 and Form No. 43.
The two directions of travel
| Who | What | Form |
|---|---|---|
| An assessee not being a resident, claiming relief under an agreement in section 159(1) or (2) | The other documents and information to be provided under section 159(8)(b) | Form No. 41 |
| An assessee being a resident in India, seeking a certificate of residence for the purposes of such an agreement | Application to the Assessing Officer | Form No. 42 |
| The Assessing Officer, on the application and on being satisfied in this behalf | Certificate of residence | Form No. 43 |
The 1962 parallel is rule 21AB, which carried the same two limbs.
Rule 75 is easy to misread because its two halves face opposite ways. Sub-rules (1) and (2) govern a non-resident claiming relief in India and are about disclosure to the Indian authority. Sub-rules (3) and (4) govern an Indian resident and are about obtaining a document to use abroad. Nothing in the first half applies to a resident, and nothing in the second half helps a non-resident.
Sub-rules (1) and (2) — the non-resident's disclosure
Sub-rule (1): for the purposes of claiming any double taxation relief under an agreement mentioned in section 159(1) or (2), the other documents and information to be provided by an assessee (not being a resident) under section 159(8)(b) shall be as per Form No. 41.
Sub-rule (2) adds the record-keeping duty: the assessee shall keep and maintain such documents as are necessary to substantiate the information provided in Form No. 41, and the income-tax authority may call for the said documents to verify the claim of relief.
Three features of that drafting matter in practice:
- Form No. 41 carries the "other" documents and information — it is additional to whatever section 159 itself requires, not a substitute for it;
- the substantiating documents are not filed with the form. They are kept and maintained, and produced only if called for; and
- there is no time limit stated in rule 75 for the authority to call for them, so the retention period runs with the claim rather than with the filing.
Sub-rules (3) and (4) — the resident's certificate
Sub-rule (3): an assessee, being a resident in India, for obtaining a certificate of residence for the purposes of an agreement referred to in section 159(1) and (2), shall make an application in Form No. 42 to the Assessing Officer.
Sub-rule (4): the Assessing Officer, on receipt of the application and on being satisfied in this behalf, shall issue a certificate of residence in Form No. 43.
Sub-rule (4) makes the Assessing Officer's satisfaction a precondition, and rule 75 sets no timeline for it. A resident who needs the Form No. 43 certificate to claim treaty benefit abroad — typically to avoid or reduce foreign withholding on a payment about to be made — should apply well ahead of the transaction, with the residence evidence assembled, rather than after the foreign payer has raised the question.
How the two halves meet in a cross-border transaction
| Party | Position | Rule 75 step |
|---|---|---|
| Indian company paying a foreign vendor | Vendor claims treaty relief on Indian tax | Vendor provides Form No. 41 information |
| The same Indian company earning income abroad | Needs to prove Indian residence to the foreign payer | Applies in Form No. 42; receives Form No. 43 |
| Assessing Officer verifying the vendor's claim | May test the disclosure | Calls for the substantiating documents under sub-rule (2) |
A group with both inbound and outbound flows therefore has obligations under both halves of rule 75 in the same year, on the same treaty, in opposite roles.
Worked example
| Facts | Position |
|---|---|
| Foreign company claims a reduced treaty rate on royalty from India | Form No. 41 with the section 159(8)(b) information |
| Supporting incorporation, management and tax filings abroad | Kept and maintained, produced if called for |
| Assessing Officer questions beneficial entitlement two years later | Documents called for under sub-rule (2) |
| Indian resident company receiving fees from a treaty country | Applies in Form No. 42 to the Assessing Officer |
| Officer satisfied | Issues the certificate of residence in Form No. 43 |
| Application made a week before the foreign payment | No statutory timeline binds the officer — apply earlier |
| Resident tries to use Form No. 41 | Wrong form — Form No. 41 is for a non-resident |
Compliance checklist
- Identify whether the assessee is on the non-resident or the resident side of rule 75.
- For a non-resident, complete Form No. 41 as the section 159(8)(b) information.
- Treat Form No. 41 as additional to, not a replacement for, what section 159 itself requires.
- Keep and maintain the substantiating documents and be able to produce them on demand.
- Retain them as long as the claim can be examined, since the rule sets no limit.
- For a resident, apply in Form No. 42 to the Assessing Officer, well before the foreign transaction.
- Assemble the residence evidence with the application, since issue depends on the officer's satisfaction.
- Use the resulting Form No. 43 certificate for the treaty claim abroad.
Common mistakes
- Filing the supporting documents with Form No. 41 instead of retaining them.
- Discarding the substantiation after the return is processed.
- Treating Form No. 41 as the complete treaty claim.
- Applying for Form No. 43 days before the foreign payment.
- Using the non-resident limb of the rule for a resident assessee.