Form 10F and Tax Residency Certificate: How to Claim DTAA Benefits

If you are a non-resident earning income in India and want to claim a lower tax rate under a Double Taxation Avoidance Agreement (DTAA), you need two documents: a Tax Residency Certificate (TRC) and Form 10F.

WHAT IS A TAX RESIDENCY CERTIFICATE (TRC)
A TRC is a certificate issued by the tax authority of the country where you are a tax resident. It confirms your residential status for treaty purposes. Under Section 90(4) of the Income Tax Act, obtaining a TRC from the government of the other country is a necessary condition for claiming DTAA benefits in India.

WHAT IS FORM 10F
Form 10F is a self-declaration prescribed under Rule 21AB of the Income Tax Rules. Section 90(5) of the Act requires a non-resident claiming treaty benefits to furnish prescribed information in the prescribed form. Form 10F captures:
- Status of the assessee (individual, company, firm, etc.)
- Nationality or country of incorporation
- Tax identification number in the country of residence
- Period for which residential status is claimed
- Address in the country of residence
- PAN or Aadhaar, if allotted in India

Both the TRC and Form 10F must be furnished to the payer before the relevant payment is made to claim the treaty rate.

HOW TO FILE FORM 10F
Since 16 July 2022, Form 10F must be filed electronically on the Income Tax e-filing portal at incometax.gov.in. Non-residents who have a PAN must log in and file through the portal. Non-residents without PAN had a temporary relaxation for manual filing, which expired on 30 September 2023. Currently, electronic filing is the standard requirement.

WHY BOTH ARE NEEDED
The TRC alone does not entitle you to treaty benefits. It is a necessary but not sufficient condition. Form 10F provides the specific particulars that the Indian tax authorities require to verify and apply the correct treaty article and rate.

PRACTICAL TIP
If you receive income from India (interest, dividends, royalties, fees for technical services), submit both the TRC and Form 10F to the Indian payer well before the payment date. This allows the payer to deduct TDS at the treaty rate instead of the higher domestic rate.