Rental income from overseas real estate—especially in high-value jurisdictions like the UK—is becoming increasingly common among Indian tax residents. However, many taxpayers find themselves puzzled when a UK tenant deducts tax at source (TDS) and the taxpayer is not registered with the UK tax authority (HMRC), i.e., has no UK TIN/UTR. The question arises: Can a valid DTAA claim still be made in India?
This guide provides a step-by-step legal and procedural walkthrough for Indian residents (including returning NRIs) who wish to claim Foreign Tax Credit (FTC) on such UK rental income for AY 2025–26 (FY 2024–25), even in the absence of a UK TIN, and explains the nuances of Form 67, Form 10F, TRC, and CBDT Circular No. 9/2017.
Legal Backbone: India–UK DTAA on Rental Income
✔ DTAA Applicability:
India and the UK are treaty partners under the Double Taxation Avoidance Agreement (DTAA).
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Article 6 (Income from Immovable Property): Provides that income from immovable property (like rent) is taxable in the country where the property is situated (i.e., UK).
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India, however, taxes global income for its residents under Section 5 of the Income Tax Act, 1961. Hence, double taxation arises.
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To avoid this, India allows a Foreign Tax Credit (FTC) under Section 90(2) read with Rule 128.
Scenario: Indian Resident, UK Rent, No UK TIN
You are an Indian tax resident and received rental income from a London property between November 2024 to March 2025, and your UK tenant deducted 20% TDS but you do not have a UK TIN (UTR) because you're not registered with HMRC.
Is DTAA claim possible without UK TIN?
✅ Yes. CBDT has not made quoting of TIN mandatory where it is not allotted, provided:
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All documentary evidence of tax deduction/payment is available, and
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An explanatory note is attached with Form 67 stating that no TIN is allotted due to non-registration in the UK.
Required Documentation for DTAA Claim
| Document | Mandatory | Notes |
|---|---|---|
| Proof of UK TDS Deduction | ✅ | Rent statement or declaration from tenant mentioning TDS, amount, date, and nature of income. |
| Proof of Rent Receipt | ✅ | Bank statements or rent agreement showing rent received in India/UK account. |
| Tax Residency Certificate (TRC) | ✅ | Apply to Indian jurisdictional AO via Form 10FA; get Form 10FB. |
| Form 10F | ✅ | Mandatory for non-residents or residents claiming FTC, even if TIN not available. |
| Explanation for No UK TIN/UTR | ✅ | State "Not Allotted" and attach a declaration explaining that registration with HMRC was not required. |
| PAN, Passport, ID | ✅ | Indian identification proof. |
| Evidence of UK Tax Payment | Conditional | Only if tenant provides HMRC tax remittance evidence. Otherwise, rely on withholding certificate. |
Form 67: Legal Requirement and Key Clauses
Form 67 is the prescribed form under Rule 128(9) to claim FTC in India.
When to File:
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Before filing your Income Tax Return (ITR) under Section 139(1).
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Must be filed before the end of the relevant Assessment Year (i.e., before 31 March 2026 for AY 2025–26).
Where to File:
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Online through the income tax portal, under “e-File → Income Tax Forms → File Income Tax Forms → Form 67”.
Verification:
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Must be digitally signed (DSC) or validated using EVC.
Mandatory Disclosures in Form 67:
| Field | Description |
|---|---|
| Foreign Country | United Kingdom |
| Nature of Income | Rent from immovable property |
| Amount of Income | In foreign currency and INR |
| Amount of Tax Paid/Deducted | 20% or as per deduction certificate |
| TIN of Foreign Country | Write “Not Allotted” and attach explanation |
| Date of Tax Payment/Deduction | As per rent slip or tenant declaration |
| Exchange Rate | Use SBI TT buying rate on last day of month preceding month of receipt (per Rule 26) |
CBDT Circular No. 9/2017 – Clarification on Form 67
The Central Board of Direct Taxes (CBDT) issued Circular No. 9/2017 dated 9 October 2017, which clarified:
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Form 67 filing is mandatory for claiming FTC.
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Failure to file Form 67 within time may lead to denial of credit.
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If foreign tax is deducted but not deposited, credit is not allowed until actual payment is made.
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TRC and Form 10F are mandatory, even for residents, to validate treaty benefit claim.
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If no TIN is available, the taxpayer must explain the reason—non-allotment or not required due to non-registration.
Practical Guidance and Caution Points
✅ Key Do’s
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Always file Form 67 before ITR, even if you revise it later.
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Attach an explanation if no UK TIN is allotted.
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Secure documentary proof of tax deduction—at minimum, a signed rent statement from tenant.
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Apply for TRC (Form 10FA/10FB) early to avoid delays.
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Even if you’re a resident and not an NRI, Form 10F and TRC are still required.
❌ Common Pitfalls to Avoid
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Filing Form 67 after ITR – leads to automatic denial of FTC in processing.
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Submitting incomplete documentation without evidence of deduction.
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Assuming UK TIN/UTR is mandatory – it is not required if justified.
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Claiming credit based on withholding certificate alone when actual tax is not remitted – credit will be denied.
If UK TIN is Later Allotted
If you later register with HMRC and get a UK TIN/UTR:
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Revise Form 67 before the end of the Assessment Year.
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Update the TIN field and attach updated documents.
Conclusion: Valid FTC Is Possible, Even Without UK TIN
In cases of UK rental income, DTAA relief is claimable in India, even without a UK TIN or HMRC registration—provided the correct procedures are followed. Form 67 and Form 10F compliance is critical, and documentary evidence of deduction is non-negotiable.
By understanding the legal position, timelines, and filing mechanics, you can avoid denial of foreign tax credit and ensure correct reporting under Indian tax law.
