CBDT allows manual filing of form 10F by non residents not having PAN and not required to obtain PAN by law until 31st March 2023
Provisions Mandate filing of Form 10F
As provided in Section 90(4) of the Income-tax Act, 1961 , a non-resident taxpayer is entitled to the benefit of Double Taxation Avoidance Agreement (DTAA) only if such non-resident taxpayer obtains a Tax Residency Certificate (TRC) from the country of his/its residence. Section 90(5) of the IT Act read with Rule 21AB of the Income-tax Rules,1962 (IT Rules) provides that where TRC does not contain prescribed information, the missing information needs to be provided separately. For this purpose, Rule 21AB of the IT Rules has notified Form 10F. In a recent CBDT has mandated the e-filing of various forms including Form 10F on the Income Tax e-Filing Portal vide Notification No. 03/2022 dated 16.07.2022 effective on an immediate basis. As e-filing of Form 10F is possible only if the taxpayer has Permanent Account Number (PAN), several non-resident taxpayers not having PAN faced genuine hardship in complying with this requirement. Hence, various representations were made before the CBDT. In this regard, recently, the CBDT has issued another F. No. DGIT(S)-ADG(S)-3/e-Filing Notification/Forms/2022/9227 Dated: 12th Dec 2022 giving relaxation to certain non-resident taxpayers.
What is the relaxation
On consideration of the practical challenge being faced by non-resident (NR) Competent Authority has decided that certain categories of non-resident taxpayers shall be exempted from the requirement of e-filing of Form 10F till 31 March 2023.
Which type of taxpayers are granted this relaxation?
A non-resident fulfilling the following conditions is exempted from e-filing of Form 10F:
- Taxpayers who are not having PAN; and
- not required to hold PAN as per relevant provisions of the IT Act read with IT Rules.
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