Meaning of Form 10F
Form 10F is a self-declaration form required to be submitted by non-resident taxpayers as a covering of Tax Residency Certificate. It enables non-residents to get relief on TDS on income accruing or arising or deemed to be accruing or arising from India.
As per section 90(4) of the income tax Act, 1961. An assessee, not being a resident, to whom an agreement referred to in sub-section (1) 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
Tax residency certificate must provide essential particulars of the Assessee’s
- status,
- Nationality,
- Tax identification number,
- Period of residential status, and
- Address outside India.
As per Section 90(5) of the Act read with Rule 21AB of the Income Tax Rules, 1962, if the tax residency certificate fails to encompass all the aforementioned essential particulars, an assessee must provide such specific information in Form No. 10F to claim relief under the agreement mentioned in Sections 90 and 90A.
However, as per Sub-Rule 2 of Rule 21AB, if the aforementioned information is already contained in the certificate (TRC) specified in sub-section (4) of Section 90 or sub-section (4) of Section 90A, the assessee may be not be required to provide the information in Form 10F. Thus, it is pertinent to note that Form 10F is only required if the aforementioned information is not mentioned in the TRC
Recent Amendment in Form 10F
The CBDT made significant changes in July 2022 by making it mandatory to electronically file Form 10F, but it was later postponed to April 1, 2023, for non-residents who do not have PAN and are not required to have PAN, due to practical difficulties in obtaining an online Form 10F in the absence of a PAN. This requirement has been extended until September 30, 2023.
In October 2023 CBDT made significant changes. Now, electronic filing of Form 10F is mandatory for all non-residents, regardless of whether they possess a PAN or not. This shift aims to streamline the process and ensure transparency.
Steps to File Online Form 10F (NR and Foreign company not having PAN)
This step-by-step instruction will help non-residents navigate the electronic filing process for Form 10F.
Step 1: Access the E-Filing Web Portal
- Visit the e-filing portal at: https://www.incometax.gov.in/iec/foportal/
- To start the registration process, simply click on the “Register” button positioned at the upper right-hand corner of the webpage.
Step 2: Registration Category
- Choose the “Others” option and then select on “Non-residents not holding and not required to have PAN” from the provided list of choices in the drop-down menu.
Step 3: Taxpayer Information
- Fill in the required information, which including full name, date of incorporation/birth, tax identification number, and country of residence.
Step 4: Key Person Details
- Provide all necessary information of the key person, which includes their full name, date of birth, tax identification number, and designation.
By following the instructions provided herein, non-residents or foreign company can effectively navigate the submission process and access the tax benefits they are entitled to under applicable treaties.
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If you have any inquiries or require clarification on any steps outlined in this guide, please don’t hesitate to reach out to CA Dinesh Sah: Email: cadinesh32@gmail.com | Mobile: 9811310753
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