All about Form 10F and its Filing Procedure

Introduction

Section 90(4) specifies that any person who is non-resident can take the benefit of DTAA* with India if he obtains that Tax Resident Certificate (TRC)* from the tax authority of his residence country confirming his tax residency status in that country. The CBDT notified Rule 21B prescribing the additional information which is required to be furnished by non- residents along with TRC in prescribing Form-10F. If non-resident wants to avail the benefits of DTAA then he must file a self-declaration in Form 10F along with a TRC of their country of residence. For e.g.- If resident of USA is providing Royalty services to Indian resident and rate specified in Income Tax Act for royalty is 20.8% (after HEC) and the rate specified for royalty in DTAA between USA and India is 10%, then he can take the benefit of DTAA rate i.e. 10% if he files self-declaration in Form 10F along with TRC. If he does not file Form 10F then he can’t take the benefit of DTAA and resident payer will deduct TDS at the rate of 20.8% (specified in Income Tax Act). While the TRC obtained generally contain most of the information as required, Form 10F is furnished by the non-resident taxpayer for the balance information as matter of precaution. This form is digitally signed by non-resident and furnished along with TRC to resident payers for determining the TDS implication under section 195 of Income Tax Act.

Terms used above*

DTAA- It stands for Double Taxation Avoidance Agreement. This is an agreement between India and other country that prevent double taxation on income earned on both the countries.

TRC- It stand for Tax Residency Certificate. It confirms the tax residency status of non-resident and it is mandatorily required to obtain from the Government if non-resident want to take the benefit of DTAA as mentioned above.

Documents Required for Filing Form 10F 

• PAN card (not mandatory now, discussed below)
• Proof of residence address in your resident country i.e. TRC
• Duration of residential status as stated in TRC
• Taxpayer status (individual, firm company, trust, etc.)
• Proof of nationality for individuals or registration for companies and firms
• Tax identification number or any other unique identification number in country of residence
• Digital signature certificate (DSC) to authenticate the information furnished in Form 10F

Is it mandatory to file form 10F online and is a PAN card required?

Yes, Form 10F is mandatory to file online w.e.f. July’2022. However, one problem arises for foreign taxpayer that they generally don’t have the PAN number and without PAN they cannot log in to e-filing portal for filing Form 10F. Therefore, government allow non-residents to file Form 10F offline till 1^st April’2023 and further extended it till 30^th September’2023. However, from 1^st October 2023 Government made it mandatory to file Form 10F online. To overcome the problem of not having PAN with non-residents, Government gave one option to non-resident in which they can login to e-filing portal without PAN by providing some basic information (discussed below). Therefore, we can say that filing Form 10F online is mandatory but now there is no mandatory requirement of PAN for non-resident, they can login even without PAN by following the process mentioned below.

How to file form 10F online for both the non-resident having PAN and not having PAN?

If non-resident is not having PAN, then he will login to e-filing portal by following process-:

1. First go to e-filing portal and click on option “Register” (near the option of Login)

2. Then select option ‘Others’ and choose category “Non-Residents not holding and not required to have PAN” and click on Continue.

3. Then, we will get the page where we need to provide following information :-

• Basic Details: Name, date of incorporation, tax identification number, and country of residence.
• Key Person Details: Name, date of birth, tax identification number, and designation.
• Con­tact Details: Primary and secondary mobile numbers and email IDs, and postal address.
• Attachments:  ID proof, address proof, and a copy of Tax Residency Certificate (TRC). The ID and address proofs must be valid documents in your country of residence.

On successfully verification of these details we will receive user ID on the register email -ID and through which we can login to e-filing portal.

4. After getting the user ID from above process or if non-resident is already having the PAN then he can login to e-filing portal with the help of user ID and password.

5. Then go to e-file tab and select option “Income tax forms”

6. Then, select tab ‘Person not dependent on any Source of Income’ and choose Double Taxation Relief (Form 10F) in search box.

7. Then, select relevant ‘Assessment Year’ and click on continue.

8. Then, click on ‘Let’s Get Started’ and provide the following information-:

• Details of Authorised signatory (Name, Father’s name) – Auto populated (form automatically picks the name of the person registered as key person)
• Section of the Income Tax Act ,1961 under which 10F is to be obtained (Section 90 or 90A).
• Status of the non –resident entity (Individual/Company/Firm/etc.)
• Nationality (for individuals) or Country of incorporation or registration (for Company, firm, etc.)
• TIN or unique number from which tax payer is identified by the Government of the country in which it is incorporated/registered as tax resident.
• Period for which TRC is obtained.
• Address of taxpayer in the country /territory outside India during the period of TRC.
• Address of the authorized signature.

9. Then we have to attach the copy of TRC and further we can proceed for e-verify with the help of Digital signature certificate (DSC).

10. On successfully verification of above details, Form 10F will get successfully filed.

Conclusion

In conclusion, Form 10F is a crucial document for individuals and businesses involved in international transactions. It helps in claiming benefit under Double Taxation Avoidance Agreements (DTAA), ensuring that income isn’t taxed twice in different countries. By providing accurate information and necessary documents like Tax Residency Certificates, taxpayers can optimize their tax liabilities and comply with the law. Remember, timely and precise filing of Form 10F is essential for smooth international tax operations and avoiding potential disputes with tax authorities.