Correct Option (d)
Explanation
Statement 1 is incorrect. The Equalisation Levy was introduced in India through Chapter VIII of the Finance Act, 2016. It operates as a separate levy and is not part of the Income Tax Act.
Statement 2 is incorrect. The Equalisation Levy is an indirect tax on digital transactions and falls outside the purview of the Income Tax Act. Consequently, non-resident entities cannot claim tax credits for this levy under Double Taxation Avoidance Agreements (DTAAs), as DTAAs typically apply to income taxes.
Incorrect Options
Options (a), (b), and (c) are incorrect because both Statement 1 and Statement 2 are factually inaccurate regarding the Equalisation Levy. Statement 1 incorrectly states its inclusion in the Income Tax Act, and Statement 2 incorrectly claims eligibility for DTAA tax credits.