Form 10F: Purpose, Applicability, Requirements, How to Download and Fill Form 10F Online?

Form 10F is a mandatory requirement to claim the benefits of Double Tax Avoidance Agreement. As per section 90 and 90A of the Income Tax Act, persons resident outside India can claim the benefits of DTAA by duly submitting the Tax Residency Certificate and Form 10F.

Form 10F Download

Download Form 10F 

What is Form 10F?

Form 10F is a self-declaration tax form used by non-resident (NR) taxpayers for claiming the benefits under DTAA (Double Taxation Avoidance Agreement).

Important Terms

1. NR taxpayers: These are individuals or entities whose primary source of income is not from India.
2. Double Taxation Avoidance Agreement (DTAA): These are agreements between India and other countries that prevent double taxation on income earned in both countries.
3. Tax Residency Certificate (TRC): This document is issued by the NR taxpayer's home country confirming their tax residency status. NR taxpayer is mandatorily required to furnish a valid TRC for claiming the DTAA benefit.

Purpose of Form 10F: Why is Form 10F needed? 

• To claim the benefits of a tax treaty, NR taxpayers need to furnish TRC and Form 10F as per Section 90 (5) of the Income Tax Act. 
• A TRC must contain certain information, including :
  • Taxpayer’s name, 
  • Foreign address, 
  • TIN (Tax Identification Number) and 
  • Taxpayer status. 

If the tax certificate does not contain these details, he/she must file the Form 10F electronically. The Form 10F requirement also allows NRIs to claim tax exemptions and deductions on their income made in India. 

Eligibility criteria for Form 10F

• Any person who wants to avail the benefits of DTAA must file a self-declaration in Form 10F along with a TRC of their country of residence. 
• Furthermore, filing Form 10F allows NRIs to avoid TDS (tax deducted at source) on income accrued in India. This is quite useful for NRIs earning in India, as all of their income is subject to TDS. 
• Moreover, TDS is deducted at a higher rate if an individual does not furnish his/her PAN. 
• The Income Tax Department has introduced a functionality enabling non-residents to furnish Form 10F electronically without a PAN.

Documents Required for Filing Form 10F

Here is a complete list of documents you may need to file the Form 10F:

• PAN card
• Proof of residential address in your resident country
• Duration of residential status as stated in the TRC
• Taxpayer status (individual, company, firm, trust, etc.)
• Proof of nationality (for individuals) or territory of incorporation or registration (for companies and firms)
• TIN or any other unique tax identification number in country of residence
• Digital signature certificate to authenticate the information furnished in Form 10F

Is it mandatory to file Form 10F online?

Previously

• Yes, filing Form 10F electronically was mandatory to claim treaty benefits.
• This posed a challenge for foreign companies without a PAN, as they needed one to register on the Income Tax Portal and file the form.

Current situation

• Non-residents can register on the Income Tax Portal without a PAN. Therefore, a PAN card is no longer required to file Form 10F online.

Non-residents without a PAN can now register on the Income Tax Portal and file Form 10F electronically by providing the following information:

• Basic details: Name, date of incorporation, tax identification number, and country of residence.
• Key person details: Name, date of birth, tax identification number, and designation.
• Contact details: Primary and secondary mobile numbers and email IDs, and postal address.
• Attachments: ID proof, address proof, and a copy of your Tax Residency Certificate (TRC). The ID and address proofs must be valid documents in your country of residence.

On successful verification of these details, you will receive a user ID on your registered email ID, through which you can login on the Income Tax Portal.

You can then upload Form 10F electronically after submitting your TRC and verifying it via OTPs.

How to File Form 10F Online?

As mentioned above, taxpayers need to file Form 10F on the income tax e-filing portal. Here is a step-by-step guide to file Form 10F:

1. Log in to the official e-filing portal with with your PAN or the user ID. Register if you do not have an account. 
2. On the dashboard, navigate to the ‘e-File’ menu and select ‘Income Tax Forms’. 
3. Click on ‘File Income Tax Forms’.
4. On the next page, select the 3^rd tab ‘Person not dependent on any source of income’. 
5. You will find the option to file Form 10F in the last column on this page. Click on ‘File Now’.
6. Enter your PAN and select the assessment year from a dropdown menu. Click on ‘Continue’.
7. Go through the given instructions and click on ‘Lets get started’.
8. Enter the required details, including your name, father’s name, Section 90/90A, country of registration/residence, TIN, etc.
9. Next, select the period for which you obtained the TRC and your address outside India.
10. After filing the other details, you need to attach a copy of your tax residency certificate. 
11. Signing of the form can be done via digital signature or electronic verification code.
12. Click on ‘Preview’ to review the details and submit the form. 

Consequences of Not Filing Form 10F

• If an NRI taxpayer applies a reduced tax rate or nil tax liability without having filed the form, he/she will be treated as an ‘assessee in default’. 
• This would also make remittances difficult as non-residents need to comply with documentation requirements to maintain accounts. 
• It is advisable for NRIs to have a valid PAN as it would let them file Form 10F online and avail the lower rate of TDS deduction. 

Who Needs a Tax Residency Certificate?

• Any Indian who has received income from a country which has a DTAA with the Indian Government needs to get a TRC (tax residency certificate). 
• For NRIs who are liable to pay tax in India and want to avoid additional taxation on their income by two countries, obtaining a TRC is a must. 
• Additionally, the government has made it mandatory for Indians to obtain a TRC for claiming DTAA benefits. 
• Foreign nationals earning income in India also need to file a TRC along with Form 10F if they want to benefit from DTAA.

Non-residents need to follow the procedure given by the government of their host country to receive a TRC. Note that the document remains valid for one financial year. 

Benefits of filing Form 10F

• Lower Tax Deduction at Source (TDS): Avoid higher tax rates on income like dividends, interest, and royalties.
• Compliance with Indian Tax Regulations: Fulfils legal requirements to claim DTAA benefits.
• Faster Processing of Tax Returns: Ensures accurate tax assessment and avoids delays.

Final Word

To sum up, filing Form 10F allows NRIs to avoid having to pay taxes on the same income to two countries. Furthermore, filing this form lets them claim various provisions of tax exemptions and deductions available under the Income Tax Act. Finally, it provides receipts for taxes paid in India, which helps to reduce tax liability in the foreign country.