“Synopsis”
For Non-Resident Indians (NRIs), avoiding double taxation is one of the most critical aspects of tax planning. India has signed Double Taxation Avoidance Agreements (DTAAs) with over 90 countries, allowing eligible NRIs to claim tax relief. However, to avail of these benefits, providing two essential documents Tax Residency Certificate (TRC) and Form 10F—is mandatory. This blog simplifies why these documents are important, how to obtain them, and how they can help NRIs reduce TDS on Indian income.
What Is a Tax Residency Certificate (TRC)?
A Tax Residency Certificate is a document issued by the tax authorities of your country of residence. It certifies that you are a tax resident of that country for a particular financial year. This certificate is a prerequisite to claim DTAA benefits on income earned in India, such as interest, dividends, rent, or capital gains.
For instance, if you’re an NRI based in the US, the TRC must be issued by the IRS and should clearly mention your name, address, tax identification number, and the financial year of tax residency.
What Is Form 10F?
Form 10F is a declaration that complements the TRC. It is submitted by the NRI to the Indian deductor (like a bank, tenant, or mutual fund company) and includes basic information such as:
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Name and status (individual, company, etc.)
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Nationality or country of incorporation
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Tax identification number (TIN)
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TRC issuing authority and validity
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Purpose: claiming DTAA relief
As per CBDT rules, both TRC and Form 10F are required to avoid higher TDS rates under Indian income tax provisions.
Why Are TRC and Form 10F Important for NRIs?
Without a valid TRC and Form 10F, NRIs cannot claim tax treaty relief under the India DTAA with their resident country. This means:
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Higher TDS on Indian income (e.g. 30% instead of 15%)
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No credit for taxes paid in India when filing returns abroad
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Delayed refunds or tax disputes with the Indian IT department
For example, under the India–USA DTAA, interest income can be taxed at 15% instead of 30%, but only if TRC and Form 10F are furnished.
How to Get a Tax Residency Certificate (TRC)?
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Contact your local tax authority (e.g., IRS in the US, HMRC in the UK, CRA in Canada)
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Submit an application or online request
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Receive a signed/stamped certificate on official letterhead
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Ensure the TRC includes:
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Name
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Status (Individual, Company, etc.)
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Tax Identification Number (TIN)
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Residential Address
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Validity Period (usually 1 financial year)
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Signature of tax authority
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How to Submit Form 10F in India
As of 2023-24, the Indian Income Tax Department requires online submission of Form 10F through the income tax portal (https://www.incometax.gov.in).
Note: If you do not have a PAN, or if you’re a foreign company, there is currently relief allowing manual submission in certain cases.
Common Indian Income Eligible for DTAA Relief
If you’re an NRI and earn any of the following types of income in India, you can claim reduced TDS using TRC and Form 10F:
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Interest on NRO fixed deposits
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Dividends from Indian shares and mutual funds
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Rental income from Indian property
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Capital gains on Indian equity or real estate
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Pension payments
Benefits of Furnishing TRC and Form 10F
 Claim reduced TDS rates under DTAA
 Avoid double taxation
 Speed up ITR processing and refunds
 Ensure compliance and avoid Section 206AA (higher TDS for missing PAN)
Best Practices for NRIs to Claim DTAA Relief
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Always apply for TRC at the start of the financial year
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Submit TRC + Form 10F to your bank or deductor in India before income is credited
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Retain copies of all documents and acknowledgement of submission
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File your Indian ITR with Form 67 (for foreign tax credit) if needed
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Use a tax professional to ensure correct DTAA article application (interest, dividend, royalty, etc.)
Conclusion
TRC and Form 10F are not just paperwork—they are your legal shield against excessive taxation in India as an NRI. With proper planning, you can unlock the full potential of India’s DTAA network, lower your tax outgo, and ensure global tax compliance.
If you’re earning income from India, make sure your Tax Residency Certificate and Form 10F are in place each year—this small step can result in big tax savings.
