India has entered into tax treaties with multiple countries to avoid instances of double taxation of income. Non-residents can reap benefits of these tax treaties by submitting the necessary documents. Tax Residency Certificates and Form 10F play an important role in this regard. The government recently bought a major change in favour of NRI Tax in India to help ease the compliance i.e. Non-Residents Can E-File Form 10F Without PAN Card. But before that, we need to understand what is Form 10F for non-residents.
Non-residents who are availing the benefits of tax treaties are required to submit their Tax Residency Certificate (TRC) along with a self-certified Form 10F. This form allows the non-residents to avail of the relief from TDS on income generated in India. As per the provisions of the Income Tax Act, non-residents can claim benefits of tax treaties only if they furnish a valid TRC. If the TRC does not contain all the necessary information, then the non-residents are required to file Form 10F.
The Central Board of Direct Taxes (CBDT) mandated electronic filing of Form 10F by issuing a Notification dated 16th July 2022. This created multiple challenges for the non-residents including:
In order to ease out the above challenges, the CBDT came up with certain relaxations. An exemption was provided whereby non-residents not having PAN and not required to obtain PAN in India can furnish self-certified Form 10F manually till 30th September 2023.
As this exemption has expired, the income tax department released a whole new category for registration on the income tax portal – ‘non-residents not having PAN and not required to obtain PAN’. This will allow non-residents to file Form 10F without PAN.
If you fall in the above category, here’s how you can register on the income tax portal to file form 10F without PAN:
The above facility to file Form 10F without PAN for non-residents was introduced by the CBDT to ease out the problems being faced by them. Here are some important points that you should consider:
Following was the detailed information relating to the new facility introduced by the CBDT allowing non-resident Indian Income Tax Return without PAN. In case you need any assistance in relation to taxation and international taxation matters, feel free to contact the ASC Group.
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