Form 10F – Information to be provided under Section 90(5) & 90A(5)

Form 10F is Income tax form which is giving the benefit to non-resident tax payer to reduce the tax rate from higher rate to lower rate of TDS (tax deduction at source) in India

Those Nonresident tax payer receiving payments from India who want to file the Form 10f is mandatory to get the TRC tax resident certificate from their home country.

Under the DTAA, an those Nonresident taxpayer having Tax Residency Certificate must have the following details – i) Name, ii) Address of the Nonresident taxpayer, iii) Tax Identification Number of a foreign country, iv) Status of taxpayer (individual, firm etc.)

Purpose of Form 10F

In order to claim benefit of any Tax treaty in respect of any income earned in India, a non-resident is required to furnish certain details in Form 10F along with the Tax Residency Certificate (TRC), as per Section 90(5) of the Income Tax Act, 1961

India has signed Double Taxation Avoidance Agreements (DTAAs) with many countries so that the income is taxed only once. One has to file Form 10F, a tax residency certificate and self declaration in the prescribed format to the entity responsible for deducting tax at source.

Tax Residence Certificate (TRC)

When a non- resident, who is liable to pay tax in India, wants to claim the benefit of a Double Taxation Avoidance Agreement (DTAA”) entered into between India and his country of residence, the Income Tax Authorities want to determine,  whether the non-resident is a bona fide tax resident of the particular State (i.e. Country), whose benefit he intends to claim. To evaluate this aspect, the Indian tax authorities evaluate this aspect for which, the non-resident is required to provide  a Tax residence certificate from the Government of the respective country, (TRC) for which a Double Tax Avoidance Agreement (DTAA)  has  been signed by India with another country or defined territory.

AMENDMENT

The Central Board of Direct Taxes (CBDT) has given partial relief to non-resident taxpayers by exempting them from mandatory electronic filing of Form 10F until 31^STMarch 2023. Filing this form is required to claim the benefits of tax treaty.

The Form 10F is signed physically by non-resident taxpayers and furnished along with the tax residency certificate to resident payers for the purpose of determining withholding tax implications.

Documents required for making form 10F

For making form 10F, some documents need to be consider for further process:

• Status (Individual, Company, Firm, etc)
• Permanent Account Number (PAN)*
• Nationality (in case of an individual) or Country or specified territory of incorporation or registration (in the case of others);
• Tax Identification Number of the assessee, in the country of Residence or Unique Tax Identification Number;
• Period for which residential status is applicable;
• Address of the assessee in a country of residence.
• Digital signature certificate is required to verify the form 10F about the authentification of the information of the form 10f.

Procedure for Filing of Form No. 10F

Form 10F would now be required to be filed via the e-filling account of Non-resident on Income Tax e-filing portal. The non-resident assessee (deductee) would be required to furnish Form 10F through the e-filing portal by following the below steps. It may kindly be noted that for log-in to the income-tax portal, PAN is mandatory:

• Log in to income-tax portal account at https://www.incometax.gov.in/iec/foportal
• On e-file tab, select ‘Income Tax Forms’ and then click on ‘File Income Tax Forms’
• Select ‘Persons not dependent on any Source of Income (Source of Income not relevant)’
• Select Form 10F from the list of forms available
• Select the relevant Assessment Year (AY)** in the tab and click on ‘Continue’.
• The assessee would be required to furnish the required details (as mentioned in Para 1.2 above) and mandatorily attach a copy of TRC.
• Signing of Form 10F can be done either through digital signature, (usually if the return of income is required to be furnished under digital signature) or through electronic verification code in accordance with Rule 131 of the IT Rules.

Validity period of Certificate

A TRC is typically valid for one financial year.

Conclusion    

I can help to the client for issuance of form 10f and related documents like pan card or Digital signature.

Pan card is optional as if now in the situation of filling manual form 10f  but from 1 April 2023 Pan card number is mandatory because no manual process will allowed to file form 10f only electronic filling is allowed and electronic filling can’t be proceed without pan card number.

Source Link

Electronic Filing Of Form 10F For Foreign Remittances is Now Mandatory (https://www.vramaratnam.com/electronic-filing-of-form-10f/)

103120000000007197.pdf (incometaxindia.gov.in)

Form 10F – Income Tax – IndiaFilings (https://www.indiafilings.com/learn/form-10f/)

https://www.business-standard.com/article/economy-policy/cbdt-exempts-from-mandatory-10f-form-requires-to-claim-tax-treaty-122121301228_1.html

https://www.rsm.global/india/insights/tax-insights/mandatory-requirement-electronic-furnishing-form-10f-case-foreign-remittance#:~:text=In%20order%20to%20claim%20benefit,the%20Income%20Tax%20Rules%2C%201962.

https://economictimes.indiatimes.com/wealth/tax/nris-without-pan-can-manually-file-form-10f-till-march-31-2023-to-avoid-tds-on-payments-received/articleshow/96218833.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst