Tax Residency Certificate (TRC) — DTAA Benefits and TRC Services in India
Helping Indian residents obtain a TRC from the Income Tax Department to claim DTAA benefits abroad, and advising non-residents on TRC requirements to access reduced withholding rates on Indian income
What Is a Tax Residency Certificate (TRC) and Why Is It Required?
A Tax Residency Certificate (TRC) is an official document issued by the tax authority of a country — in India's case, by the Income Tax Department — confirming that a person or entity is a tax resident of that country for a specified period. The TRC is the foundational document required to claim benefits under a Double Tax Avoidance Agreement (DTAA): without a valid TRC, the payer of income to a non-resident cannot apply the reduced withholding tax rate prescribed by the applicable DTAA.
At N D Savla & Associates, we assist with Tax Residency Certificate (TRC) matters on both sides: helping Indian residents obtain a TRC from the Income Tax Department to claim DTAA benefits in foreign countries; and advising non-residents on the TRC requirements they must fulfil to claim DTAA benefits on their Indian income. Our TRC services connect to Form 15CA and 15CB filing, NRI tax filing, and DTAA advisory.
How Can an Indian Resident Obtain a TRC from India?
Indian tax residents who need a TRC to claim DTAA benefits in a foreign country — to claim reduced withholding tax on investment income or business income received from abroad — can apply for a TRC from the Indian Income Tax Department.
Application Process
File Form 10FA
The TRC application is made by submitting Form 10FA to the Assessing Officer having jurisdiction over the applicant. The form requires the applicant's name, address, PAN, relevant assessment year, taxpayer status (individual, company, etc.), and the country where the TRC is needed along with the applicable DTAA.
Assessing Officer Reviews and Issues Form 10FB
Upon review, the Assessing Officer issues the TRC in Form 10FB. The TRC confirms the applicant's name, PAN, nationality, country of tax residence (India), taxpayer status, and the period for which tax residency is certified.
Submit TRC to the Foreign Payer
The TRC in Form 10FB is submitted to the foreign payer or their country's tax authority to claim DTAA benefits — reduced withholding tax on dividends, interest, royalties, fees for technical services, or employment income earned abroad.
TRC Requirements for Non-Residents Claiming DTAA Benefits in India
Non-residents earning income in India — through dividends, interest, royalties, technical service fees, capital gains, or other sources — and wishing to claim the reduced withholding tax rate under India's applicable DTAA must provide a valid TRC from their home country's tax authority to the Indian payer.
What the TRC Must Contain
Under Section 90(5) and Rule 21AB, the TRC furnished by a non-resident must contain all of the following:
| Required Particular | Detail |
|---|---|
| Name of the taxpayer | Must match the name on the payment arrangement |
| Status | Individual, company, firm, etc. |
| Nationality / Country of incorporation | For individuals: nationality. For entities: country of incorporation or registration. |
| Country of tax residence | The country confirming the certificate |
| Taxpayer identification number | TIN or equivalent in the country of residence |
| Period of validity | The financial year(s) for which residency is certified |
| Address during the period | Address in the country of residence for the certified period |
If the TRC does not contain all prescribed particulars, the non-resident must additionally furnish Form 10F — a self-declaration providing the missing information. Without both a valid TRC and Form 10F where required, the payer cannot apply the reduced DTAA withholding rate.
What Is Form 10F and When Is It Required?
Form 10F is a self-declaration form that a non-resident must furnish to the Indian payer in addition to the TRC, where the TRC does not contain all the particulars required under Rule 21AB. The form is filed online on the Income Tax e-filing portal by the non-resident.
Online Filing Mandatory (from August 2023)
The Income Tax Department made Form 10F online submission mandatory from August 2023 — previously it could be filed as a physical document. Non-residents must register on the Income Tax portal to file Form 10F electronically.
PAN Required to File Form 10F
Filing Form 10F online requires a PAN registration in India. Non-residents who do not have a PAN but need to claim DTAA benefits must apply for one specifically for this purpose — see our PAN for non-residents page for the Form 49AA process.
What Form 10F Declares
Form 10F provides the missing TRC particulars — status, nationality or country of incorporation, TIN, period of residency, and address — as a self-declaration by the non-resident, supplementing what the home country TRC itself contains.
When It Must Be in Place
Form 10F must be in place before the payment is made — not after. A payer cannot apply a reduced DTAA rate and issue Form 15CB at a reduced rate without the TRC and Form 10F already on hand. Timing matters in every cross-border payment arrangement.
How TRC, Form 15CB, and DTAA Compliance Work Together
The TRC, Form 15CB, and Form 15CA work together in the foreign remittance compliance process. When an Indian company pays fees to a non-resident vendor and wants to apply a reduced DTAA withholding rate, the sequence is:
| Step | Who Does It | What Happens |
|---|---|---|
| 1. TRC furnished | Non-resident vendor | Provides TRC (and Form 10F where required) confirming treaty residence to the Indian payer |
| 2. CA reviews and certifies | Indian CA (N D Savla & Associates) | Reviews TRC, payment nature, and applicable treaty article — determines the reduced DTAA rate applicable |
| 3. Form 15CB issued | Indian CA | Certifies the reduced applicable DTAA rate; cannot be issued without a valid TRC on hand |
| 4. Form 15CA filed | Indian payer | Filed on the portal with the certified DTAA rate before the remittance is processed |
| 5. Remittance made | Indian payer / bank | Processed at the DTAA-reduced TDS rate with full documentation trail |
Without the TRC, the CA cannot certify a reduced DTAA rate in Form 15CB — and the full domestic TDS rate must be applied. This can significantly increase the cost of international service arrangements and creates cash flow issues for non-resident service providers who must then claim excess TDS as a refund through an Indian income tax return.
Frequently Asked Questions About Tax Residency Certificate
What is a Tax Residency Certificate (TRC)?
A TRC is an official certificate issued by a country's tax authority confirming that a person or entity is a tax resident of that country for a specific period. It is required to claim reduced withholding tax rates under a DTAA — without a valid TRC, the full domestic TDS rate applies to payments made to the non-resident.
How does an Indian resident apply for a TRC?
By submitting Form 10FA to the Assessing Officer having jurisdiction over the applicant, providing name, PAN, assessment year, taxpayer status, and the country for which the TRC is needed. The Assessing Officer issues the TRC in Form 10FB confirming Indian tax residency for the specified period — which is then presented to the foreign payer or their country's tax authority to claim DTAA benefits abroad.
What particulars must a TRC contain?
Under Rule 21AB: name of taxpayer, status (individual or entity), nationality or country of incorporation, country of tax residence, taxpayer identification number in the country of residence, period of validity, and address during the relevant period. If any of these are missing from the TRC, Form 10F must be filed as a supplementary self-declaration to complete the DTAA benefit claim.
What is Form 10F and when is it required?
Form 10F is a self-declaration form filed online on the Income Tax portal by a non-resident, providing TRC particulars that are missing from the TRC itself. It is required when the TRC does not contain all the prescribed particulars under Rule 21AB. From August 2023, online filing of Form 10F is mandatory — it can no longer be filed as a physical document — and a PAN registration in India is required to file it.
What happens if a non-resident does not provide a TRC?
The Indian payer must deduct TDS at the higher domestic Income Tax Act rate rather than the reduced DTAA rate. The CA cannot certify a reduced rate in Form 15CB without the TRC. The non-resident then needs to file an Indian income tax return to claim the excess TDS as a refund — a time-consuming process that could have been avoided with a valid TRC in place before the payment was processed.
TRC Services — Form 10FA Filing, Non-Resident TRC Review & Form 10F Compliance
India TRC for DTAA claims abroad, non-resident TRC verification for Indian income payments, Form 10F online filing, and integration with Form 15CA/15CB remittance compliance across Pune and India.
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