For NRIs and Residents with Global Income in Interest, Rental, and Dividend Forms
🔍 Introduction
In Part 1 of this blog, we explained how an Indian resident or NRI can claim DTAA relief on rental income from the UK, even without a UTR (Unique Taxpayer Reference), using a combination of Form 10F, Tax Residency Certificate (TRC), and a proper Form 67 declaration.
However, many assessees derive foreign-sourced income from countries beyond the UK, including interest from foreign banks, dividends from US stocks, or rental income from other jurisdictions like UAE, Singapore, or Canada—and often face the same challenge: foreign TIN or UTR not allotted.
This Part 2 aims to fill the gap with the most exhaustive DTAA relief guide covering all complex and lesser-known cases—with law interpretation, CBDT circular support, Form 67 detailing, and compliance strategies.
Applicable Law Framework (Recap + Additions)
| Provision | Summary |
|---|---|
| Section 90(2) | Taxpayer can opt for DTAA if it is more beneficial than domestic tax |
| Section 90(4) | TRC is mandatory to claim DTAA relief |
| Section 90(5) | Requires prescribed declaration and documents (Form 10F, etc.) |
| Rule 128(9) | Form 67 must be furnished before ITR filing for foreign tax credit |
| CBDT Circular No. 9/2017 | Clarifies procedure, timelines, and Form 67 enforcement |
Common Income Types Without Foreign TIN – DTAA Implications
A. Interest from Foreign Bank Account (e.g., UK/US/Canada/Singapore)
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Issue: No TIN/UTR is issued by banks for interest income.
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Law: Still eligible to claim DTAA relief.
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Action: Mention “Not Allotted” in Form 10F. Submit a declaration under Section 90(5).
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Form 67: File before ITR submission.
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Support: No CBDT mandate requiring foreign TIN if not allotted.
B. Rental Income from UK / Canada / Australia
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Issue: UTR or foreign TIN not allotted to individual landlords below threshold.
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Declaration: Attach signed declaration that no UTR/TIN is allotted.
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Evidence: Tenant ledger, bank proof, and remittance slips. TRC from India required.
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Form 67: Report gross income, foreign tax deducted (if any), and INR conversion.
C. Dividends from US Stocks (e.g., Apple, Amazon)
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Issue: Assessee may not have SSN or ITIN.
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DTAA (India–US): 25% or 15% concessional rate applicable.
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TDS Proof: Form 1042-S, brokerage ledger.
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Declaration: Explain no SSN/ITIN allotted. Still eligible if income is taxable in India.
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Form 67: Attach TDS and brokerage statements, convert to INR, and file with declaration.
D. Interest from Global Bond Investments
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Example: Bonds issued by German/French entities.
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TIN Issue: No TIN may be issued to bondholders.
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Action: Same as above—explanation that TIN not allotted, supported by custodian letter or broker summary.
Declaration When Foreign TIN Is Not Allotted (Section 90(5))
Essentials of the Declaration:
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Statement that no foreign TIN/UTR/SSN is allotted by foreign authority.
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Description of the source of income (interest/rent/dividend).
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Mention of nature of income and applicable DTAA Article.
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Amount of foreign tax paid/deducted.
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Confirmation that income is being offered in Indian ITR.
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Statement that the TRC from Indian authorities is enclosed.
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INR Conversion used (per RBI/telegraphic rate on the date of payment).
CBDT has not prescribed a specific format; a properly worded declaration on plain paper suffices.
Detailing of Form 67 for Foreign Tax Credit
| Clause | Key Details Required |
|---|---|
| 1–4 | Name, PAN, Address, Tax Year |
| 5 | Name of foreign country & DTAA applicable |
| 6 | Type of income (interest, rent, dividend) |
| 7 | TIN in foreign country (write “Not Allotted” if not given) |
| 8 | Total income earned and tax deducted in foreign country |
| 9 | INR conversion method |
| 10 | Declaration: Income offered in India and TRC available |
Form 67 must be filed on or before the ITR filing date. Late Form 67 = no foreign tax credit (per Circular 9/2017).
Legal Support for Not Having Foreign TIN
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CBDT Circular 2/2021: Relief allowed even if foreign TIN is not available, provided TRC & declaration are filed.
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Circular 9/2017: Filing Form 67 on time is mandatory, but foreign TIN is not absolute if not allotted.
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Judicial Stand: Absence of foreign TIN does not invalidate DTAA claim, provided genuine income, TRC, and declaration are submitted.
Practical Caution Points
| ✅ Do | ❌ Don’t |
|---|---|
| File Form 67 before ITR | Miss deadline for Form 67 |
| Use “Not Allotted” correctly | Leave TIN blank without explanation |
| Attach proper declaration | Skip supporting documents |
| Preserve TRC & rent proof | Depend on tenant/broker only |
| Use correct exchange rate | Guess INR values from foreign docs |
Real Scenarios: Application Table
| Income Type | Country | TIN Allotted? | Action |
|---|---|---|---|
| Bank Interest | UK | ❌ | TRC + Form 67 + Declaration |
| Property Rent | UK | ❌ | “Not Allotted” in 10F + Form 67 |
| US Dividends | US | ❌ | Declare no SSN + brokerage proof |
| UAE Salary | UAE | ❌ | Zero TDS but TRC + declaration for taxability |
| Canada Rent | Canada | ❌ | Same process as UK |
Conclusion – Maximise Relief, Minimise Scrutiny
Even in the absence of a foreign TIN or UTR, you can legally and safely claim DTAA benefits in India. The key lies in transparent disclosures, timely Form 67 filing, and a structured declaration as per Section 90(5).
💼 NRIs and Residents with global incomes must understand that the absence of a foreign identifier is not a barrier—but mishandling documentation can trigger compliance scrutiny or denial of credit.