Tax Residency Certificate (TRC)  For Indian Resident Assessee

From 01.4.2013 the India Residents who earns Income from Countries with which India have a DTAA can obtain  a Tax Residency Certificate from Income Tax Department. The same may be submitted to the Payer to claim DTAA Benefit.

An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to the Assessing Officer.

The Assessing Officer on receipt of an application referred to in sub-rule (3) and being satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form No. 10FB.

Tax Residency Certificate (TRC)  For Non Resident Assessee

(1) From 01.04.2012 An assessee, not being a resident in India, shall obtain  Tax Residency Certificate (TRC) from the Government of the country or the specified territory of which Assessee claims to be resident , which shall contain the following particulars, namely:-

(i)  Name of the assessee;

(ii)  Status (individual, company, firm etc.) of the assessee;

(iii)  Nationality (in case of individual);

(iv)  Country or specified territory of incorporation or registration (in case of others);

(v)  Assessee’s tax identification number in the country or specified territory of residence or in case no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory;

(vi)  Residential status for the purposes of tax;

(vii)  Period for which the certificate is applicable; and

(viii)  Address of the applicant for the period for which the certificate is applicable;

(2) The above details shall be provided by the non resident assessee in Form 10F

(3) The certificate referred to in sub-rule (1) shall be duly verified by the Government of the country or the specified territory of which the assessee, referred to in sub-rule (1), claims to be a resident for the purposes of tax.

Certificate for claiming relief under an agreement referred to in sections 90 and 90A is specified under rule 21AB of the Income Tax Rules.

For Ready Reference the extract of the rule has been reproduced:

21AB. [(1) Subject to the provisions of sub-rule (2), for the purposes of sub-section (5) of section 90 and sub-section (5) of section 90A, the following information shall be provided by an assessee in Form No. 10F, namely:—

(i) Status (individual, company, firm etc.) of the assessee;

(ii) Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others);

(iii) Assessee’s tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident;

(iv) Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and

(v) Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.

(2) The assessee may not be required to provide the information or any part thereof referred to in sub-rule (1) if the information or the part thereof, as the case may be, is contained in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.

(2A) The assessee shall keep and maintain such documents as are necessary to substantiate the information provided under sub-rule (1) and an income-tax authority may require the assessee to provide the said documents in relation to a claim by the said assessee of any relief under an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, as the case may be.]

(3) An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to the Assessing Officer.

(4) The Assessing Officer on receipt of an application referred to in sub-rule (3) and being satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form No. 10FB.]

(Republished With Amendments)

Also Read:

Will Tax Residency Certificate [TRC] be sufficient ? May not be?

How to report Incomes from India while filing tax return in USA?

More Under Income Tax

9 Comments

  1. Riti Lal says:

    Can we get Tax Residency Certificate, online? I am working for a Spanish Company and I have to submit this Certificate to avoid double taxation.

    1. Thilaka says:

      Riti Lal even I am working for a Spanish company as a freelancer. Me too having the same doubt. If you have obtained one kindly do guide me to proceed with this .

  2. rksca says:

    Hi Team
    I have a company based out in INDIA and i provide the services in SINGAPORE.
    The Payments which i receive from the Singapore entity is after deduction of 10% witholding Tax.
    Can you please guide me on how i can claim the benefit of DTAA as i will be required to pay the taxes in INDIA also.

  3. ramya acharya says:

    We have availed service from a UK based company and have made payments after deducting TDS u/s 195. The company has provided us with Tax Residency Certificate to claim benefit under DTAA and wants TDS certificate for tax deducted by us. Kindly let us know what is the process for issuing a TDS certificate.

  4. Jerish says:

    Please note that the entire provisions are relating to an Assessee not being a resident in India……
    Section 90(4) and 90A(4)……
    Why an resident assessee shall obtain a TRC when the provisions of S-90&90A are not applicable?
    Please correct it.

  5. CA Rajendra Hegde says:

    A foreign Company has to file a return of income in India for the AY 2015-16. The Company name has been changed in the home country in August 2014. However, PAN correction has not been made in India to effect the change in Name. Now my question is if we take TRC and Form 10F in new name for the FY 2014-15, is there any issue? Can I claim the benefit of the DTAA if TRC and Form 10F is issued in new name?

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