Form 10F Filing: Guide on Applicability, Procedure & Practical Issues

1. Introduction

Form 10F is a compliance requirement under the Indian Income-tax Act, 1961 for Non-Resident (NR) taxpayers who wish to claim benefits under a Double Taxation Avoidance Agreement (DTAA) when a Tax Residency Certificate (TRC) does not contain all the prescribed details. In recent years, Form 10F has gained significant importance due to increased foreign remittances, strict TDS scrutiny, and digitisation of compliance by the Income Tax Department.

This article explains the legal background, applicability, step-by-step filing process, due dates, and common practical issues relating to Form 10F filing.

2. Legal Background of Form 10F

As per Rule 21AB of the Income-tax Rules, 1962, a non-resident claiming DTAA benefit is required to furnish the following details:

• Status of the assessee
• Nationality (in case of individuals)
• Country of residence
• Tax Identification Number (TIN)
• Period for which residential status is applicable

If these details are not fully mentioned in the TRC, the non-resident must furnish Form 10F.

3. Who is Required to File Form 10F

Form 10F is required to be filed by:

• Non-Residents (individuals / companies / LLPs)
• Foreign companies
• Overseas entities receiving income from India

Typical transactions where Form 10F is required:

• Professional or consultancy fees
• Royalty
• Technical services
• Interest income
• Dividend income
• Any other income subject to DTAA benefit

4. When is Form 10F Required

Form 10F is required when:

• The payee is a non-resident, and
• DTAA benefit is claimed, and
• TRC does not contain all prescribed details under Rule 21AB

Even if TRC is available, Form 10F is generally insisted upon by banks, auditors, and tax authorities for smooth remittance and lower TDS application.

5. Documents Required for Form 10F Filing

Before filing Form 10F, the following documents should be arranged:

• Tax Residency Certificate (TRC)
• Passport (for individuals)
• Certificate of Incorporation (for entities)
• Authorised signatory details
• PAN (if available)

6. PAN Requirement for Form 10F

Initially, the Income Tax portal allowed Form 10F filing without PAN. However, from August 2022 onwards, technical changes led to practical difficulties for non-residents without PAN.

Subsequently, the CBDT provided relaxation allowing non-residents without PAN to file Form 10F manually for specified periods, subject to conditions.

Practically, many non-residents now obtain PAN to avoid repeated compliance hurdles.

7. Step-by-Step Process to File Form 10F Online

Step 1: Login to Income Tax Portal

Login to https://www.incometax.gov.in using:

• PAN-based login, or
• PAN created for non-resident entity

Step 2: Navigate to Form 10F

Go to:

• e-File → Income Tax Forms → File Income Tax Forms
• Select Form 10F

Step 3: Select Relevant Assessment Year

Choose the Assessment Year for which DTAA benefit is claimed.

Step 4: Fill in Form 10F Details

Enter the following details:

• Status (Individual / Company / Firm etc.)
• Nationality / Country of incorporation
• Tax Identification Number (TIN)
• Period of residential status
• Address in country of residence

Step 5: Verification & Submission

• Verify the form using DSC or Electronic Verification Code (EVC)
• Submit the form

On successful submission, an Acknowledgement Number is generated.

8. Due Date for Filing Form 10F

There is no specific statutory due date prescribed. However, Form 10F should be filed:

• Before remittance, or
• Before applying lower TDS rate under DTAA

Practically, Form 10F is filed annually or per financial year.

9. Common Practical Issues Faced

1. PAN Not Available

• Non-residents without PAN face portal login issues
• Manual filing may be required for past periods

2. Portal Technical Glitches

• Error while selecting assessment year
• DSC validation failure

3. TRC Period Mismatch

• TRC validity not matching financial year
• Fresh TRC may be required

4. Multiple Payments

• Whether one Form 10F is sufficient for multiple remittances
• Generally, one Form 10F per financial year per payee is accepted

10. Consequences of Non-Filing of Form 10F

If Form 10F is not filed:

• DTAA benefit may be denied
• TDS may be deducted at higher domestic rates
• Issues during tax audit or assessment
• Disallowance of expense under Section 40(a)(i)

11. Best Practices

• Obtain PAN for frequent foreign payees
• Maintain updated TRC and Form 10F annually
• File Form 10F before first remittance of the year
• Keep acknowledgement for audit purposes

12. Conclusion

Form 10F is a crucial compliance document for non-residents claiming DTAA benefits. With increasing scrutiny on foreign remittances, proper filing of Form 10F along with TRC ensures smooth application of concessional tax rates and avoids future litigation. Tax professionals and businesses should adopt a proactive approach by completing Form 10F compliance at the beginning of every financial year.

Author: Sindhu Shree