Form 10F is a declaration submitted by Non-Resident (NR) taxpayers who wish to claim tax relief under a Double Taxation Avoidance Agreement (DTAA) but whose Tax Residency Certificate (TRC) lacks some required details.
David Miller, a resident of the UK, earns interest income from a fixed deposit in an Indian bank. While he has obtained a Tax Residency Certificate (TRC) from UK authorities, the document does not mention his UK tax identification number (TIN).
To claim the benefit of the India-UK DTAA and avoid higher TDS on the interest income, David must:
By doing this, David ensures that the bank deducts TDS at the reduced DTAA rate instead of the default higher rate.
Maria Lopez, a resident of Spain, receives royalty income from an Indian publishing house. Spain has a DTAA with India. Maria obtains a Tax Residency Certificate (TRC) from Spanish authorities. However, the TRC does not mention her Spanish Tax Identification Number (TIN).
To claim the reduced DTAA tax rate on royalty income (10% instead of 20%), she is required to:
After uploading both the TRC and Form 10F on the Income Tax Portal and verifying electronically, Maria successfully avails the DTAA benefit.
If you're unsure how to file Form 10F correctly or need professional assistance, our tax experts at FileBob.in are here to help.
Get Expert HelpIf you're unsure how to file Form 10F correctly or need professional assistance, our tax experts at FileBob.in are here to help.
Get Expert HelpYes. As per the latest guidelines, non-residents without PAN can now register and file Form 10F electronically using their foreign TIN and proof of identity.
Q. Is TRC mandatory? – Yes, Form 10F is valid only when TRC is also submitted.
Q. Can I file without DSC? – Yes, if you use Electronic Verification Code (EVC).
Q. Do I need a Tax Residency Certificate (TRC) to get tax treaty benefits, and can I be denied these benefits if I don't have a TRC? – Yes, according to section 90(4) / 90A(4), not having a TRC can lead to denial of tax treaty benefits. However, in some cases, like Skaps Industries India (P.) Ltd., you can argue that if your residency is substantiated, benefits shouldn't be denied.
Q. Which period should I mention in Form 10F, point (v): taxable year of the Resident state or Source state or the one mentioned in TRC?
Q. What if the TRC is for a period before the payment?
Q. Some countries issue TRCs in their language. Will that be valid?
Q. What is Form 10F and why it is required? – Form 10F is a declaration to supplement missing details from your TRC to claim tax treaty benefits.
Q. What is Form 10F used for? – It is used to supplement missing details in TRC to claim tax relief under a DTAA.
Q. Is it mandatory to file Form 10F online? – Yes, filing Form 10F online through the Income Tax Portal is mandatory for non-residents.
Q. Is Form 10F mandatory for foreign companies? – Yes, foreign companies earning income from India must file Form 10F.
Q. Who should submit Form 10F? – Any non-resident earning income from India who does not have all the required details in their TRC.
Q. What is the difference between Form 10F and TRC? – TRC is an official certificate of tax residency issued by the foreign country, whereas Form 10F is a declaration to provide missing details in the TRC.
Q. Who needs a tax residency certificate? – Non-residents earning income from India and wishing to claim benefits under DTAA need a TRC.
Q. When is Form 10F needed? – Form 10F is needed when a TRC lacks essential details required to claim tax treaty benefits.
Q. What is the validity of Tax Residency Certificate? – TRC validity depends on the tax year mentioned in the certificate.