Form 10F is a cover document for Tax residency certificate required to be filed by non-residents in order to claim benefit of any Tax Treaty with Government of India.
In an era of seamless global transactions, navigating the intricacies of tax compliance has become imperative for non-residents. The Central Board of Direct Taxes (CBDT), vide notification dated 16 July 2022, had mandated the electronic filing of Form 10F. Due to this requirement, the non-residents transacting with residents in India and relying on any provision of the tax treaty for exemption/beneficial tax rates had to obtain PAN in India.
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.
RELEVANT PROVISIONS FOR FORM 10F
SECTION 90 (4) An assessee, not being a resident, to whom the agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless a certificate of his being a resident in any specified territory outside India, is obtained by him from the Government of that specified territory.
SECTION 90 (5) The assessee referred to in sub-section (4) shall also provide such other documents and information, as may be prescribed.
Explanation 1.—For the removal of doubts, it is hereby declared that the charge of tax in respect of a company incorporated in the specified territory outside India at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such company.
Explanation 2.—For the purposes of this section, the expressions—
(a) “specified association” means any institution, association or body, whether incorporated or not, functioning under any law for the time being in force in India or the laws of the specified territory outside India and which may be notified as such by the Central Government for the purposes of this section;
(b) “specified territory” means any area outside India which may be notified as such by the Central Government for the purposes of this section.
Explanation 3.—For the removal of doubts, it is hereby declared that where any term is used in any agreement entered into under sub-section (1) and not defined under the said agreement or the Act, but is assigned a meaning to it in the notification issued under sub-section (3) and the notification issued there-under being in force, then, the meaning assigned to such term shall be deemed to have effect from the date on which the said agreement came into force.
RULE 21AB : Certificate for claiming relief under an agreement referred to in sections 90
(1)Subject to the provisions of sub-rule (2), for the purposes of sub-section (5) of section 90 and sub-section (5) of section 90A, the following information shall be provided by an assessee in Form No. 10F, namely:—
| (i) | Status (individual, company, firm etc.) of the assessee; | |
| (ii) | Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others); | |
| (iii) | Assessee’s tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident; | |
| (iv) | Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and | |
| (v) | Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable. |
(2) The assessee may not be required to provide the information or any part thereof referred to in sub-rule (1) if the information or the part thereof, as the case may be, is contained in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.
(2A) The assessee shall keep and maintain such documents as are necessary to substantiate the information provided under sub-rule (1) and an income-tax authority may require the assessee to provide the said documents in relation to a claim by the said assessee of any relief under an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, as the case may be.
(3) An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to the Assessing Officer.
(4) The Assessing Officer on receipt of an application referred to in sub-rule (3) and being satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form No. 10FB.
DOCUMENTS /DETAILS CHECKLIST:
A COMPANY DETAILS:
1 Tax Residency Certificate
2 Incorporation Certificate
3 Address Proof
4 Company Email Id and Indian Mobile Number
B KEY PERSON DETAILS:
1 Id Proof (Containing Date of Birth)
2 Tax Identification Number
3 Designation
4 Email Id And Mobile Number
PROCEDURE FOR REGISTRATION AS NON RESIDENT WITHOUT PAN:
•The non-resident can click on the ‘Register‘ option on the e-filing portal, i.e., https://www.incometax.gov.in/iec/foportal.
•Under the ‘others’ category, there is an option to choose ‘non-residents not having a PAN and not required to have a PAN‘.
•Basic details will need to be entered, like name, date of incorporation, tax identification number, status, and country of residence.
•The non-resident will then have to provide the details of the key person, i.e., name, date of birth, designation, and Tax Identification Number.
•The next step is to provide contact details, i.e., email address and mobile number, which will be verified through an OTP.
•The non-resident will need to upload certain documents like its TRC, address proof, identification proof, and any other document if required.
•Lastly, the non-resident will have to set password for the e filling account and thereafter a User ID will be generated.
PROCEDURE FOR FILING FORM 10F:
- Visit https://www.incometax.gov.in/iec/foportal and log into your income-tax portal account using the user ID password obtained during registration.
- Go to the ‘e-file’ tab, choose ‘Income Tax Forms,’ then click ‘File Income Tax Forms.’
- Select Form 10F from the list of available forms.
- Pick the relevant Assessment Year (AY) in the tab and click ‘Continue.’
- Provide the necessary details while form 10F online filing, and attach a copy of the TRC as a mandatory requirement.
- Save the draft and then click on preview.
- In the next step, verify the Form, using an electronic verification code, received on the registered mobile no. and Email ID.
- Once the form has been verified, click on the ‘Submit’ tab.
- Save the acknowledgement.
The above process has eased the compliance of Form 10F to be done in India without obtaining PAN. The applicant should however make sure that they fall under this condition of not obtaining a PAN.
The author can be reached at +91-9407557572 & kartik@ackassociates.com.
