Income Tax Form 43: Certificate of Residence (Section 159)

Form 43 under the Income-tax Act, 2025 is a Tax Residency Certificate (TRC) issued by the Assessing Officer to certify that a taxpayer is a resident of India for the purpose of claiming benefits under Double Taxation Avoidance Agreements (DTAA). Unlike other forms, it is not filed directly by the taxpayer but is issued upon application made through Form 42 along with required supporting documents. There is no fixed limit on the number of certificates issued in a year, as multiple TRCs may be granted for different periods or treaty requirements. The certificate is generated through the Income Tax system and made available electronically on the e-filing portal. Form 43 is crucial for taxpayers seeking to avail treaty benefits in foreign jurisdictions, as it serves as official proof of Indian tax residency. Without this certificate, claiming DTAA relief may not be possible, making it an essential compliance document.

FAQs on Income Tax Form 43: Certificate of residence for the purposes of section 159 of Income Tax Act, 2025

Certificate of residence for the purposes of section 159 of the  Act

Q1. What is Form 43?

Ans: Form 43 is the tax residency certificate issued by the Assessing Officer of the Indian Income-tax Department, certifying that a person is a resident of India for the purposes of Sections 159 (i.e., to claim benefits under a Double Taxation Avoidance Agreement (DTAA)).

Q2. Who should file Form 43?

Ans: Form 43 is not a form filed by the taxpayer. It is a Certificate of Residence issued by the department, when taxpayer files Form 42.

Q3. Is Form 43 mandatory?

Ans: Yes, Form 43 is the Tax Residency Certificate (TRC) issued by the Indian Income-tax Department. But, it is issued only on request of the taxpayer by filing Form 43.

Q4. How many times can Form 43 be issued in a year?

Ans: There is no specific statutory limit on the number of times Form 43 can be issued within a year in India, as long as each certificate relates to a distinct and valid period of a tax year.

Generally, A TRC (Form 43) is issued per financial/Tax year. If there are multiple types of income requiring application of multiple treaties or separate requirements from different foreign tax authorities, Form 43 can be obtained for each relevant purpose period. Thus, there’s no annual cap like “only once per year” under Indian income-tax rules — issuance is based on need and validity period, not on a count limit.

Q5. What documents are required to issue Form 43?

Ans: Duly filled & signed Form 42, along with the documents as required in Form 42 are the basis on which Form 43 is issued.

Q6. Can Form 43 be issued offline?

Ans: Form 43 is to be issued on the ITBA by the Assessing Officer to the taxpayer and is then to be made available on the e-filing portal for easier access to the taxpayer.

Q7. Why is Form 43 important?

Ans: Form 43 is a Certificate of Residence issued by the department, when assessee files Form 42 to get Tax Residency certificate. Thus, Form 43 is the Tax Residency Certificate (TRC) in India that certifies that an individual, company, or entity is a resident of India. It is therefore crucial for claiming benefits under Double Taxation Avoidance Agreements (DTAA) in countries/specified territories.

Guidance Note on Income Tax Form 43: Certificate of residence for the purposes of section 159 of Income Tax Act, 2025

FORM 43 – CERTIFICATE OF RESIDENCE FOR THE PURPOSES OF SECTION 159 OF THE ACT

A. PURPOSE

Form 43 is the tax residency certificate issued by the Assessing Officer, certifying that a person is a resident of India for the purposes of Section 159 of the Income-tax Act, 2025. This tax residency certificate thus enables the taxpayer to claim benefits under a Double Taxation Avoidance Agreement (DTAA). The Form is prescribed under Rule 75(4) of the Income-tax Rules 2026.

B. WHO SHOULD FILE

The Form is issued by the Assessing Officer upon application received in Form 42.

C. FREQUENCY & DUE DATES

N.A. as the form is issued by the Department upon receipt of application. There are no statutory due dates for issuing the same nor limit on the number of TRCs (if there are no overlapping time-periods in a tax year). The same depends on requirements of the taxpayer with regard to different time periods and different foreign tax authorities

D. STRUCTURE OF FORM 43

Form 43 contains Particulars of the taxpayer such as Name of the Individual or Entity, PAN, communication address, Email, Phone Number etc.

This is followed by a certificate from the Assessing Officer that the taxpayer is a resident of India for a stated period.

E. WHAT ARE THE DOCUMENTS REQUIRED TO FILE THE FORM 43?

The certificate is issued by the department when the application is received in Form 42 and the supporting documents listed therein and as required by Assessing Officer.

F. WHAT IS THE PROCESS FLOW OF FILING FORM 43?

A. As the Assessing Officer issues the Form

G. OUTCOME OF PROCESSED FORM 43

N.A. The form itself is issued by the department and not filed by taxpayers. Hence, there is no processing involved. Once Form 43 is given by the department, it means the tax residency certificate is received by the taxpayer who can then claim the benefits under DTAA in other tax jurisdictions.

H. BRIEF NOTE ON BROAD OR QUALITATIVE CHANGES PROPOSED

Part A standard template with particulars of the Applicant

I. COMMON CHANGES MADE ACROSS FORMS

1) To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address, PAN have been separated into different boxes.

2) Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.