Saturday, August 22, 2020

How To Get a Tax Residency Certificate (TRC) in India - Form 10FA / 10FB

Indian Residents carrying out business with foreign entities may at times be asked for an Indian Tax Residency Certificate (TRC) right before the customer can send the payment for work delivered, so as to avail the benefit as per the Double Tax Avoidance Agreement (DTAA) between India and that country.

Further, Non Resident Indians (NRIs) may also be asked to submit their TRC in the host country. Similarly, it may also be needed by foreign companies with offices in India.

It is issued for one financial year for which the application is made, and thus, may be required to be obtained in each financial year.

To obtain a TRC in India, the assessee must file an application in Form 10FA with the Assessing Officer (AO).

The TRC is given in Form 10FB.

The form is linked above and would require mentioning of the following:

- Full Name and address of the assessee 
- Status (Individual, HUF, Partnership Firm, Body of Individuals, Company, etc)
- Nationality (in case of individual)
- Country of Incorporation/Registration
- Address of the assessee during the period for which TRC is desired
- Email ID
- Basis on which the status of being resident in India is claimed
- Period for which the TRC is applicable
- Purpose of obtaining TRC
- Any other detail

Such form must be accompanied by supporting documents and explanation for the above.

The application is filed manually at the Income Tax Office in the relevant ward, and no process for online filing is available yet. The assessee may request the AO to accept an application filed on email though.