/ DTAA

TRC CERTIFICATE FOR NRI INDIAN- STEP-BY-STEP PROCEDURE

Tax Residency Certificate

TAX RESIDENCE CERTIFICATE FOR NON-RESIDENT INDIANS—STEP-BY-STEP PROCEDURE

1. Documentation requirement for TRC Certificate: The Central Board of Direct Taxes finally issued Rule 21AB, which outlines the format in which the TRC should be submitted. The following documents or information are required for TRC.

  • Name of the taxpayer
  • Status (individual, company, firm etc.) of the taxpayer
  • Nationality (in case of individual)
  • Place of incorporation or registration (country or specified territory) (in case of others).

·        The taxpayer’s tax identification number in the country or specified territory of residence, or, if no such number exists, a unique number by which the person is identified by the government of the country or specified territory.

·        For tax purposes, residential status.

·        The time period for which the certificate is valid.

·        The applicant’s address for the period for which the certificate is valid.

Enter your registered mobile number and PAN to find your assessing officer (AO) on the web using the official website.

Prepare a document that explains how you entered and exited the country using your stamped passport. If you check-in or check-out online, you should keep your air tickets as proof for the assessing officer.

2.     The certificate referred to in subrule (1) must be duly verified by the government of the country or defined territory in which the taxpayer, as defined in sub-rule (1).

3.      Download the Form 10FA and hand it in to the assessing officer. The reason for the tax resident certificate must be disclosed. You must also include a copy of your passport, complete with all departure and arrival stamps. A taxpayer who is a resident of India must submit an application in Form No. 10FA to the Assessing Officer in order to acquire a certificate of residence for the purposes of an agreement referred to in sections 90 and 90A.

4.      Upon receipt of an application referred to in sub-rule (3) and satisfaction in this regard, the Assessing Officer shall issue a certificate of residence in Form No. 10FB to the taxpayer. After you’ve completed all of your submissions, the officer may invite you to meet with him to discuss the documents. The assessing officer will eventually give the TRC in Form 10FB after receiving complete satisfaction.

A Resident taxpayer can obtain a TRC by filing an application in Form 10FA with the AO

  • As per Indian tax regulations, a resident taxpayer can obtain a Tax Residency Certificate (TRC) by filing an application in Form 10FA with the Assessing Officer (AO). Upon verification, the AO will issue the TRC in Form 10FB.

Documents Required for Filing Form 10FA:

The following details must be furnished:

  • Full name and address of the assessee
  • Status (Individual, HUF, Firm, Company, etc.)
  • Nationality (for individuals)
  • Country of incorporation/registration (for entities)
  • Address during the period for which TRC is required
  • Email ID
  • PAN/TAN (if applicable)
  • Basis for claiming resident status in India
  • Period for which TRC is applicable
  • Purpose of obtaining TRC
  • Any other details required by the AO

The application form, along with supporting documents, must be submitted to the AO, who will issue Form 10FB upon satisfaction of the details provided.

Submission of TRC & Form 10F for Non-Residents

We previously assisted multiple foreign companies in successfully completing Form 10F (valid from April 1, 2024, to March 31, 2025). U/s 90(5) & 90A(5) of the Income-tax Act, 1961, non-residents receiving payments from India must submit both the TRC & income tax Form 10F to claim DTAA benefits.  Although Section 90 does not explicitly specify the exact timing for submitting TRC & Form 10F to Indian tax authorities, it is a pre-condition under Section 90(4) & 90(5) that non-residents must provide these documents to avail of DTAA benefits.

If a payer applies DTAA provisions while making payments to a non-resident without obtaining TRC & Form 10F, they may be considered an assessee in default, leading to tax consequences. Please ensure timely submission of TRC and Form 10F to avoid any compliance issues.

As a result of the above-mentioned DTAA agreement, the certificate will assist you in avoiding double taxation on your earnings.

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