Differences Between Form 10F & TRC

What is Differences Between Form 10F & TRC ?

What is Form 10F ?

• Form 10F is a self-declaration form that non-resident assessees fill out to provide specific details required to claim the benefits of DTAA treaties.
• It includes information such as the assessee’s name, status, nationality, tax identification number, residential status, and the period for which DTAA benefits are claimed.
• Form 10F is used to supplement the TRC and is typically submitted to the Indian tax authorities.
• Mandatory for non-residents who wish to claim tax treaty benefits but who may not have a PAN in India

While Filling Form 10F  Non-Residents may face below Challenging 

For the non-residents, this caused a number of difficulties, including:

• In order to file Form 10F, they had to register on the income tax system.
• To register on the income tax portal, a PAN was mandatory.
• To digitally sign Form 10F, a Digital Signature Certificate (DSC) was mandatory.

What are the basic Document requirements for Filing Form 10F?

When preparing to file Form 10F online, non-residents must ensure they have the necessary documents and information to streamline the process. Here is a comprehensive list of the requirements:

• If the non-resident has a PAN, it should be used during the filing process. However, if the non-resident does not have a PAN and is not required to obtain one, they can register and file Form 10F without a PAN, as described in the recent updates.
• Provide proof of residential address in the home country. This can be in the form of utility bills, rental agreements, or any official document indicating the current residential address.
• Indicate the period for which the residential status is claimed as per the Tax Residency Certificate (TRC). This helps determine the validity period for the DTAA benefits.
• Clearly state the taxpayer’s status, such as individual, company, firm, trust, etc. This information is crucial for accurately filing the form.
• Proof of Nationality or Territory of Incorporation:

1. • 1. For individuals: Proof of nationality, such as a passport.
     2. For entities: Certificate of incorporation or registration documents indicating the territory of incorporation.

• Provide the Tax Identification Number or any other unique tax identification number issued by the country of residence. This number is used to uniquely identify the taxpayer in their home country.
• Ensure you have a valid TRC issued by the tax authorities of your country of residence. This certificate serves as proof of your residency and is required to claim DTAA benefits.
• A Digital Signature Certificate is needed to authenticate the information provided in Form 10F. Ensure the DSC is valid and registered with the income tax portal for smooth processing.

Tax Residency Certificate (TRC)

• A TRC is an official document issued by the tax authorities of a country confirming that the taxpayer is a resident of that country for tax purposes.
• It typically includes the taxpayer’s name, status, nationality, tax identification number, residential status, the validity period of the certificate, and the taxpayer’s address.
• It serves as conclusive proof of the taxpayer’s residency in the country of issuance, which is necessary for claiming DTAA benefits.
• Essential for non-residents to prove their residency status in their home country to the Indian tax authorities.

Differences Between Form 10F and TRC –

Key Points related to Form 10F 

• Self-declaration by the non-resident.
• Provides supplementary information required under DTAA.
• Filed electronically or manually as per regulatory requirements.
• Used alongside the TRC to claim treaty benefits.

Key Points related to TRC:

• Official document issued by the tax authority of the country of residence.
• Serves as conclusive proof of residency.
• Required to validate the claim for DTAA benefits.

Are Form 10F and TRC the same?

• In order to benefit from the DTAA treaties, non-resident assessees must self-declare on Form 10F. On the other hand, the tax residency certificate (TRC) acts as proof of residency for

Usage Together – To claim DTAA benefits in India:

• TRC: Establishes the taxpayer’s residency in their home country.
• Form 10F: Provides additional details required by Indian tax authorities to process the claim.
• So Form 10F and a Tax Residency Certificate (TRC) are not the same, although both are used in conjunction to claim benefits under Double Taxation Avoidance Agreements (DTAA).

By submitting both documents, non-residents can effectively claim the benefits under the applicable DTAA, such as reduced withholding tax rates on income earned in India.

Have Difficulty Filling Up Form 10F? Our Tax Advisory Service’s tax advisers can assist you in filing Form 10F while keeping compliance requirements. Get a Consultation Right Now!

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