Income Tax Act, 1961 has introduced two Notifications with regard to filing of Form 10F [Refer Rule 21AB(3)] vide Notification No. 3 of 2022 dated 16th of July, 2022 and Notification vide Folio No F. No. DGIT(S}-ADG(S)-3/e-Filing Notification/Forms/2022/9227 dated 12th December,2022. Purpose of these Notifications issued is detailed below:
Notification No. 3 of 2022 dated 16th of July, 2022
Wherein the Director General of Income Tax (system) in exercise of the power conferred under Rule 131 of the Income Tax Rules, 1962 has specified the Forms, returns, statements, reports, orders, as the case may be, which shall be furnished electronically and shall be verified in the manner prescribed under sub rule (1) of Rule 131.
One of such Form specified under the said Notification is Furnishing of Form 10F
What is Form 10F- Form 10F deals with the information required to be furnished by the assessee as referred to sub rule (1) of Rule 21AB for the purpose of sub section (5) of Sec 90 & Sec 90A of the Income Tax Act, 1961 which shall include the following information, namely
(i) Status (individual, company, firm etc.) of the assessee;
(ii) Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others);
(iii) Assessee’s tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the assessee claims to be a resident;
(iv) Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and (Refer Explanation)
(v) Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.
Explanation:
Sec 90/ Sec 90A of the Income Tax Act deals with the Agreement that the Central Government of India may enter into with the Government of any country outside India/ specified territories OR agreement by Central Government between specified Association for the purpose of granting relief in respect of
(i) income on which have been paid both income-tax under this Act and income-tax in that country or specified territory, as the case may be, or
(ii) income-tax chargeable under this Act and under the corresponding law in force in that country or specified territory, as the case may be, to promote mutual economic relations, trade and investment, or
Considering sub section (4) of Section 90/ 90A which states that An assessee, not being a resident, to whom an agreement referred to in sub-section (1) of Sec 90 or Sec 90A, as the case may be, applies, shall not be entitled to claim any relief under such agreement unless a certificate of his being a resident in any country outside India or specified territory outside India, as the case may be, is obtained by him from the Government of that country or specified territory.
(Further , refer to sub clause (3) of Rule 21AB which states that An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to theAssessing Officer)
The assessee referred to in sub-section (4) of Sec 90 & Sec 90A shall also provide such other documents and information, as may be prescribed i.e. information required to be furnished in Form 10F.
Notification vide Folio No F. No. DGIT(S}-ADG(S)-3/e-Filing Notification/Forms/2022/9227
This Notification has come up with the intention of providing partial relief with regard to electronic submission of Form 10F by Non resident taxpayers not having PAN in making compliance as per the said Notification , with a view to mitigate genuine hardship to such Non-resident taxpayers.
Those Non resident taxpayers not having PAN and are also not required to take PAN as per the relevant provisions of the Income tax Act, 1961 read with Income Tax Rules,1962(Refer to Sec 139A of the Income Tax Act) are exempted from mandatory electronic filing of Form 10F till 31st march, 2023.
For the sake of clarity, it is reiterated that such category of taxpayers may make statutory compliance of Filing Form 10F till 31st March, 2023 in manual form as was being done prior to issuance of the DGIT, Notification No. 3 of 2022.
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Any update on online filing of form 10f