Non-resident taxpayers seeking relief under the Double Taxation Avoidance Agreement (DTAA) must ensure proper documentation and compliance with Indian tax regulations. One critical requirement is Form 10F, which must be submitted along with a Tax Residency Certificate (TRC) to claim DTAA benefits such as concessional tax rates or exemptions.
As per Rule 21AB of the Income-tax Rules, 1962, read with Section 90(5) of the Income-tax Act, a non-resident taxpayer must file Form 10F electronically along with a valid Tax Residency Certificate (TRC) issued by the foreign tax authority. These documents collectively serve as evidence to:
Prove the tax residency status of the assessee in the foreign jurisdiction;
Claim DTAA benefits such as a reduced rate of tax or exemption on specific income;
Avoid double taxation or double non-taxation (especially relevant in zero-tax jurisdictions like UAE or Kuwait).
While TRC confirms residency, Form 10F contains additional particulars that are often not included in a TRC.
If the TRC already includes all the following details, filing Form 10F may not be necessary:
Status of the assessee (individual, company, firm, etc.);
Nationality (for individuals) or country of incorporation (for others);
Tax Identification Number (TIN) or any unique ID used in the foreign jurisdiction;
Period for which residential status is valid;
Address in the country of residence.
In such cases, the TRC alone may suffice, provided it satisfies all the prescribed particulars.
In a move towards digital compliance, the Central Board of Direct Taxes (CBDT) has mandated electronic filing of Form 10F on the Income-tax e-filing portal. Earlier, Form 10F could be submitted manually, but now it must be uploaded online and verified using the prescribed authentication methods.
Steps:
Log in to the Income Tax e-filing portal.
Go to E-file > Income Tax Forms > File Income Tax Forms.
Select the category “Person not dependent on any source of income”.
Locate Form 10F and click “File Now”.
Choose the relevant Assessment Year.
Fill in the required details and upload a copy of the TRC.
Verify using:
OTP (linked to Aadhaar),
EVC via Net Banking, or
Other available electronic methods.
For non-residents not required to have a PAN:
Steps:
Visit the e-filing website and click Register.
Under Category, select “Non-Residents not having and not required to have PAN”.
Enter relevant information such as:
Taxpayer name and TIN,
Date of birth/incorporation,
Country of residence,
Details and contact of the key person.
After OTP verification (on email and mobile), upload supporting documents:
TRC,
ID and address proof,
Other applicable documents.
Submit Form 10F electronically.
If Form 10F (and TRC) is not furnished, the deductor (payer in India) may refuse to extend DTAA benefits. As a result:
Tax may be withheld at standard or higher rates under the Income-tax Act, not the concessional DTAA rate.
In the absence of PAN and valid documents, withholding may be done at a higher rate under Section 206AA.
If the non-resident assessee files the return directly and claims DTAA benefits without submitting Form 10F and TRC:
The Income Tax Department may deny the DTAA relief, leading to higher tax liability or delayed refunds.
This can also trigger further scrutiny or notices.
Filing Form 10F electronically is now a critical compliance requirement for non-resident taxpayers claiming DTAA benefits in India. Whether you are a deductor or a non-resident assessee, ensure timely and complete submission of TRC and Form 10F to avoid denial of treaty benefits and unnecessary tax burdens.
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