Filing Form 10F for Non-Residents Without PAN – A Practical Guide

Introduction

Form 10F is a crucial compliance requirement under Indian income tax laws for non-resident taxpayers who wish to claim benefits under a Double Taxation Avoidance Agreement (DTAA) but do not possess a Permanent Account Number (PAN) in India. Filing Form 10F enables the non-resident to furnish prescribed details electronically to the Indian tax authorities.

With increasing cross-border transactions, understanding the procedure and implications of filing Form 10F without PAN has become essential for tax professionals and non-resident taxpayers.

Legal Background

• Section 90 / Section 90A of the Income-tax Act, 1961 allows non-residents to claim DTAA benefits.
• Rule 21AB mandates furnishing of Form 10F when details are not fully captured in the Tax Residency Certificate (TRC).
• As per Rule 114A, PAN is generally required; however, relaxation is provided for certain non-residents.

Who Is Required to File Form 10F?

Form 10F must be filed by a non-resident who:

• Earns income from India (e.g., royalty, fees for technical services, interest, dividend, etc.),
• Seeks DTAA benefits, and
• Does not have a PAN in India, and
• Holds a valid Tax Residency Certificate (TRC) issued by the tax authorities of their country of residence.

Information Required in Form 10F

Form 10F captures the following details:

1. Status (Individual / Company / Firm, etc.)

2. Nationality or country of incorporation

3. Tax Identification Number (TIN) of the foreign country

4. Period for which residential status is claimed

5. Address in the country of residence

These details supplement the TRC for DTAA claims.

Filing Form 10F Without PAN – Procedure

1. Registration on the Income Tax Portal

• The non-resident must register on the Indian Income Tax e-filing portal as a user.
• Registration can be completed without PAN by selecting the appropriate option and using passport/TIN details.

2. Logging In and Accessing Form 10F

• After registration, log in to the portal.
• Navigate to:
  e-File → Income Tax Forms → File Income Tax Forms → Form 10F

3. Filling and Submitting the Form

• Enter the required details accurately.
• Verify the form using Electronic Verification Code (EVC) sent to the registered email ID.
• Digital Signature Certificate (DSC) is not mandatory for non-residents without PAN.

Effective Date and Compliance Note

• Mandatory electronic filing of Form 10F has been applicable from 1 October 2022.
• In the absence of Form 10F, DTAA benefits may be denied, resulting in tax withholding at higher domestic rates (including Section 206AA implications).

Key Practical Issues

• Timely filing: Form 10F should ideally be filed before receipt of income or before deduction of tax.
• TRC validity: Ensure that the TRC period matches the period mentioned in Form 10F.
• Consistency: Details in Form 10F must align with Form 15CA/15CB and withholding documentation.

Consequences of Non-Filing

Failure to file Form 10F may result in:

• Disallowance of DTAA benefits,
• Higher withholding tax,
• Compliance queries during assessment or scrutiny.

Conclusion

Form 10F plays a vital role in enabling non-residents without PAN to claim DTAA benefits in India. With the availability of PAN-less registration on the income tax portal, compliance has become more streamlined. However, careful attention must be paid to timelines, accuracy of information, and coordination with withholding tax documentation to avoid disputes and excess taxation.