income tax

How to File Form 10F for Double Taxation Avoidance in India

Introduction

Section 90(4) of the Income Tax Act allows non-residents to benefit from the Double Taxation Avoidance Agreement (DTAA) with India, provided they secure a Tax Residency Certificate (TRC) from their home country's tax authority, confirming their tax residency status. To facilitate this, the Central Board of Direct Taxes (CBDT) has introduced Rule 21B, which outlines the additional information non-residents must submit alongside their TRC using Form 10F. When non-residents aim to utilize the DTAA benefits, they must file a self-declaration in Form 10F along with their TRC.

Key Terms

  • DTAA: Double Taxation Avoidance Agreement, which prevents double taxation on income earned in both India and another country.
  • TRC: Tax Residency Certificate, which verifies a non-resident's tax residency status and is mandatory for availing DTAA benefits.

Documents Required for Filing Form 10F

To properly file Form 10F, non-residents must prepare the following documents:

  • Tax Residency Certificate (TRC)
  • Duration of residency status as stated in the TRC
  • Taxpayer status (individual, firm, company, trust, etc.)
  • Proof of nationality for individuals or incorporation registration for businesses
  • Tax Identification Number (TIN) or any unique identification number from the country of residence
  • Digital Signature Certificate (DSC) for authenticating the information in Form 10F

Is Filing Form 10F Online Mandatory? Is a PAN Card Required?

Yes, it is mandatory to file Form 10F online starting July 2022. However, many foreign taxpayers do not possess a PAN, which is necessary to access the e-filing portal for submitting Form 10F. To address this issue, the government allowed non-residents to file Form 10F offline until April 1, 2023, with a further extension to September 30, 2023. From October 1, 2023, e-filing of Form 10F has been made compulsory. Thankfully, non-residents can now log into the e-filing portal without a PAN by following a simplified procedure detailed below.

How to File Form 10F Online: Non-residents with and without PAN

For Non-residents Without PAN:

  1. Visit the e-filing portal and click on “Register.”
  2. Select “Others” and choose “Non-Residents not holding and not required to have PAN,” then click on Continue.
  3. Enter the following details:
    • Basic Details: Name, date of incorporation, tax identification number, country of residence
    • Key Person Details: Name, date of birth, tax identification number, designation
    • Contact Details: Primary and secondary mobile numbers, email IDs, postal address
    • Attachments: Valid ID proof, address proof, and a copy of the TRC

Upon successful verification of these details, a user ID will be sent to the registered email address to access the e-filing portal.

  1. Using the user ID and password, log into the e-filing portal.
  2. Click on the “e-file” tab and select “Income Tax Forms.”
  3. Find the option for “Person not dependent on any Source of Income” and choose “Double Taxation Relief (Form 10F).”
  4. Select the applicable “Assessment Year” and click continue.
  5. Provide the following information:
    • Details of Authorized Signatory (name, father’s name — auto-populated)
    • Section of the Income Tax Act, 1961 under which Form 10F is being filed (Section 90 or 90A)
    • Status of the non-resident entity (individual/company/firm, etc.)
    • Nationality (for individuals) or country of incorporation (for companies)
    • TIN or unique identification number from the home country
    • Period of validity for the TRC
    • Address in the country of residence during the TRC period
    • Address of the authorized signatory
  6. Attach a copy of the TRC and proceed to e-verify using a Digital Signature Certificate (DSC).
  7. Upon successful verification, Form 10F will be filed successfully.

Conclusion

Form 10F is an essential document for individuals and businesses engaged in international transactions. It facilitates the claiming of benefits under Double Taxation Avoidance Agreements (DTAA), thereby preventing the double taxation of income across countries. By submitting accurate information and necessary documents, such as TRCs, taxpayers can effectively manage their tax liabilities while complying with relevant laws. Timely and precise filing of Form 10F is vital for unimpeded international tax operations and for avoiding potential disputes with tax authorities.