The Ultimate Compliance and Filing Strategy When Income Arises from Complex Global Sources
Introduction
As international investing and global income become common for Indian residents and NRIs, a growing number of assessees face a compliance dilemma: How to claim DTAA relief when foreign tax identifiers (TINs, UTRs, SSNs, EINs) are not issued—especially for modern or hybrid sources like crypto exchanges, global stock apps, passive partnerships, or even trusts?
In Part 1, we dealt with UK rent without UTR.
In Part 2, we expanded to bank interest, US dividends, and foreign bond income without foreign TINs.
This Part 3 dives deep into advanced scenarios left untouched earlier. It addresses multi-country income, cryptocurrency gains, hybrid foreign structures, online platforms (eToro, Interactive Brokers, Binance, Revolut), and dual residency conflicts—all without a foreign TIN—and still makes valid DTAA claims with lawful backing.
Relevant Law: Quick Refresher + Deep Dive
| Provision | Relevance |
|---|---|
| Section 90(2) | DTAA overrides domestic law if beneficial |
| Section 90(4) | TRC mandatory |
| Section 90(5) | Prescribed declaration (Form 10F) and documentation required |
| Rule 128 (9) | Form 67 to be filed on/before ITR |
| CBDT Circular 2/2021 | Accepts TRC/Declaration even if foreign TIN is not issued |
| CBDT Circular 9/2017 | Emphasizes timely Form 67 filing for credit validity |
Income from Crypto Platforms – No TIN Issued
Common Platforms:
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Binance, Kraken, KuCoin, Coinbase – no TIN/UTR issued to Indian users
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Problem: Gains taxed in India (30%) but platform may deduct withholding or issue trade statements only
Compliance Steps:
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Mention "Not Allotted" under TIN in Form 10F
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Attach proof of gains and platform ledger (PDF/excel)
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Explain in declaration: "Platform does not allot TIN/UTR; trades and gains are verifiable and reported under Indian law."
Form 67 Filing:
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Declare crypto gain as capital income or business income (as applicable)
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Mention country as per platform jurisdiction (e.g., Seychelles for KuCoin)
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Provide exchange rate and gain computation in INR
Legally Allowed:
CBDT has not mandated foreign TIN in cases where such identifier is genuinely not issued, per Circular 2/2021.
Foreign LLPs, Partnerships, and Trusts – Passive Income Issues
Scenario:
Indian residents often receive income from:
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US LLPs (pass-through entities)
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UK or Singapore Family Trusts
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Partnership profits in UAE, Ireland, etc.
These entities may not allot a TIN to beneficiaries.
Valid Claim Allowed If:
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The foreign entity provides a payout letter or certificate of distribution
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You declare the income in Indian ITR under IFOS or Business Head
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Form 67 is properly filed with:
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Payout proof
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Declaration of no TIN/UTR being issued
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TRC of India enclosed
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Interpretation:
The “resident” of India is allowed to claim credit even when foreign entity is fiscally transparent, per OECD Model Commentary and Indian judicial trends.
Online Investment Apps – No TIN, But Income Earned
Examples:
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eToro, Trading212, Revolut, Interactive Brokers
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Foreign platforms that may:
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Deduct tax on US dividends (e.g., via W-8BEN)
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Not issue a tax identifier
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Strategy:
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Brokerage ledger + tax statement used as proof
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File Form 67 with dividend/interest/realized gain entries
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Declare TIN as “Not Allotted” with explanation
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Provide W-8BEN if available; if not, submit your own declaration under 90(5)
Multiple Foreign Countries – Structuring Multi-Entry Form 67
If you earn from 3+ countries (e.g., UK rent, US stocks, UAE bank interest):
You Must:
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File multiple entries in Form 67, each for a different country
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Provide relevant declaration and TRC backup per country
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Use correct exchange rates and tax rates per DTAA
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Ensure consistency in ITR Schedule FA (Foreign Assets) and Schedule FSI
Common Errors to Avoid:
| Mistake | Correction |
|---|---|
| Using one row in Form 67 for multiple countries | Use one row per country-income pair |
| Skipping declaration for each country | Declare “TIN not allotted” per income type |
| Mixing income heads (rent, dividend, interest) in one row | Separate as per DTAA article |
Dual Residency Cases (India + Another Country)
Example:
Resident in India but also fulfills resident criteria in UAE or Singapore for part of year.
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DTAA tie-breaker rule applies (center of vital interest, habitual abode, etc.)
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TRC from India + proof of UAE residence can be attached
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No TIN in UAE? Declare "Not Allotted" with residence proof
CBDT has not disallowed DTAA relief in such dual-residency cases if properly supported with Form 67 and declarations.
Capital Gains from Foreign Shares or ETFs
Scenario:
Indian resident sells:
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US shares (Apple, Microsoft)
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UK REITs or ETFs via foreign brokers
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May not be allotted TIN; only receive a sale confirmation
Process:
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Use broker’s capital gains statement
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Show proceeds and cost in INR
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Declare under “Capital Gains” in ITR
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File Form 67 with foreign tax deducted (if any)
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Explain TIN not issued; attach broker ledger and remittance trail
Final Compliance Toolkit
| Requirement | When to Use | Remarks |
|---|---|---|
| TRC | Mandatory | From Indian authorities for most claims |
| Form 10F | Mandatory | TIN as “Not Allotted” allowed with reason |
| Declaration u/s 90(5) | Always when TIN is missing | Plain paper, factual |
| Form 67 | On/before ITR date | One per country-income pair |
| Proof of Income | Income slips, broker ledgers, remittance proof | Attach or preserve |
Conclusion: DTAA Relief is Legal Even Without Foreign TIN – If Done Right
As global income sources diversify, DTAA provisions must be understood beyond traditional employment or rent cases. Even when platforms or entities do not issue TIN/UTR/SSN/EIN, Indian residents or NRIs can claim lawful DTAA benefits—provided documentation, declarations, and Form 67 filings are timely and accurate.