Tax Residency Certificate

With trade, investment and work increasingly crossing borders, the same income can be taxed in two countries. India's double taxation avoidance agreements (DTAAs) prevent that, but only if you can prove which country you are resident in. A tax residency certificate (TRC) is that proof, and without it treaty relief is usually refused. We arrange TRCs for Indian residents and check foreign TRCs for non-residents claiming relief in India.

What a TRC is

A TRC is an official document from a country's tax authority certifying that a person or entity is resident there for tax purposes for a stated period. In India it is issued by the Income Tax Department to residents who need to claim treaty relief abroad.

Why you need one

• Lower withholding tax rates on cross-border payments
• Relief from double taxation through exemption or credit
• Access to treaty exemptions available only to residents of the treaty country

The legal basis

• Section 90(4) of the Income-tax Act: a non-resident claiming treaty relief in India must obtain a TRC from the government of their country of residence.
• Section 90A(4): the same for agreements with specified territories.
• Rule 21AB of the Income-tax Rules: the information to be provided and the procedure for Indian TRCs.

Without a valid TRC, a non-resident may be denied treaty relief even if otherwise eligible.

Who needs a TRC

• NRIs receiving rent, dividends or interest from India
• Foreign companies receiving royalties, fees for technical services or capital gains from India
• Indian residents earning salary, professional or business income from a treaty country
• Investors and groups with cross-border investments or services

What the certificate should show

• Name and status (individual, company, firm and so on)
• Nationality or country of incorporation
• Tax identification number in the country of residence
• Residential status for tax purposes
• Period covered by the certificate
• Address

Where a foreign TRC does not contain all of this, the missing details are given in Form 10F. Since 2023, Form 10F is filed electronically on the Indian income tax portal.

Getting a TRC from India (for Indian residents)

1. Apply in Form 10FA on the income tax portal, stating the period and the country where relief is to be claimed.
2. Verification: the tax officer may ask for PAN, returns, bank statements, address proof and, for entities, incorporation documents.
3. Issue: once satisfied, the officer issues the TRC in Form 10FB for the period requested, which can be downloaded from the portal.

The Indian TRC is then given to the foreign payer or tax authority to claim relief there.

Non-residents claiming relief in India

• Obtain a TRC from the tax authority of your country of residence.
• Give it to the Indian payer before payment, so tax is deducted at the treaty rate, and keep it for your Indian return.
• File Form 10F on the portal for any information the TRC lacks.
• Have the certificate translated where it is not in English, and notarised or apostilled if the payer requires it.

Examples

• Interest from India: an NRI living in the UAE earns NRO interest, normally subject to 30% TDS. With a UAE TRC and Form 10F, the India-UAE treaty rate of 12.5% can be applied instead.
• Software services from the US: an Indian client pays a US company fees that may be taxable in India. With a US TRC, the company can claim the India-US treaty position, which may reduce or remove Indian tax depending on the nature of the services.
• Indian consultant with UK clients: an Indian resident providing services to UK clients may need an Indian TRC to show the UK payer and claim relief there.

Common difficulties

• Delays in issue by the tax officer
• Foreign certificates in a format or language the Indian payer will not accept
• Certificates that do not cover the full period of payments
• Foreign authorities that issue certificates slowly
• Additional requirements in India, such as Form 10F and PAN

Apply early, ideally before the first payment of the year, so tax is not deducted at the higher rate while you wait.

PAN for non-residents

A non-resident receiving income from India without a PAN generally faces TDS at 20% or the applicable rate, whichever is higher. A PAN is also needed to file returns and claim refunds. Limited relaxations exist, for example for certain interest and royalty payments where the TRC and specified details are provided, but most non-residents need both a PAN and a TRC.

Online facility

Form 10FA can be filed, tracked and the Form 10FB certificate downloaded on the income tax portal, so Indian residents abroad can complete the process without visiting an office.

Consequences of false information

Providing incorrect information to obtain a TRC or treaty benefit can lead to denial of the benefit, tax with interest and penalties, closer scrutiny in later years and, in serious cases, prosecution.

How we help

We prepare and file Form 10FA and follow up until the certificate is issued, review foreign TRCs and file Form 10F, and advise on the treaty rate to apply, so relief is available from the first payment.

Common questions

How long is a TRC valid?

For the period stated on it, usually one financial year. A new certificate is needed for each year of payments.

Is Form 10F enough without a TRC?

No. Form 10F supplements a TRC with missing details; it does not replace it.

How long does an Indian TRC take?

It depends on the tax office; it can take a few weeks. Applying before the first payment avoids tax being deducted at higher rates in the meantime.

Section and form numbers on this page refer to the Income-tax Act, 1961 and its rules. From 1 April 2026 the Income-tax Act, 2025 applies, with new section and form numbers; the requirements described here are broadly unchanged. We use whichever numbering applies to your transaction date.