Direct Tax Alert

Online Furnishing of Form 10F by Non-Resident Taxpayers for Claiming the Benefits of DTAA

October 03, 2022

Non-Resident (NR) payees or deductees are required to provide a Tax Residency Certificate (TRC) to avail of the beneficial provisions of the Double Taxation Avoidance Agreement (DTAA) between the country of residence and India. However, in case any prescribed information is not mentioned in TRC, an additional document (i.e. Form 10F) is required to be furnished along with TRC.

Central Board of Direct Tax (CBDT) issued Notification No. 3/2022 on 16th July 2022 under the Income Tax Act (ITA), which requires NR to file Form 10F electronically on the web portal of the Income Tax Department (ITD). Before the aforesaid notification came into force, Form 10F was required to be shared in hard copy by NR with the Indian Resident Assessee, for claiming benefits of beneficial provisions of DTAA vis-à-vis ITA, for deduction of tax at source.

Subsequent to the issue of aforesaid notification Form 10F is now required to be submitted online on the web portal of ITD, using the Digital Signature Certificate (DSC) of NR, and also required to attach a copy of TRC at the time of said submission. Recently, the e-filing utility for filing of Form 10F has been activated for Assessment Year 2022-23 and Assessment Year 2023-24.

For complying with the online submission of Form 10F and claiming benefits of beneficial provision of DTAA, NR is mandatorily required to have a Permanent Account Number (PAN) as per ITA and TRC of the country of residence of NR.

It is advisable and in the interest of the Indian Resident Assessee, to maintain a copy of electronically submitted Form 10F and TRC from NR, in its records, to avoid any future litigation/ tax exposure which may arise due to a claim of beneficial withholding provisions.

Last updated: 06/10/2022

Himanshu Suryan

Senior Manager- Taxation Advisory & Compliance Services

MBG Corporate Services

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