Form 10F is like a self-declaration form for people who live outside India but earn money here. If you’re a non-resident and want to benefit from a tax agreement between India and your home country, you need to fill out this form.
In this blog, Finsmart accounting – one of the best outsourced accounting services providers in India – is here to share insights on Form 10F in the most simplified form ever. Read on!
Here’s how Form 10F works
When you get money from India, the person giving you the money (usually someone in India) has to deduct a bit of tax. To avoid paying tax twice (once in India and once in your home country), you tell the Indian tax folks about your situation using Form 10F.
You also need to attach a certificate from your home country’s government (called Tax Residency Certificate or TRC) that proves you’re a taxpayer there. This helps the Indian tax authorities check if you really qualify for the tax relief.
When and how do you do this?
Every year you get money from India, you fill out Form 10F and submit it along with the TRC. If you have taxable income in India or you paid too much tax, you might also need to file an income tax return in India.
The tax department says you must submit Form 10F electronically, for both non-residents with and without PAN (Permanent Account Number).
There’s a new category on the income tax portal for non-residents without a PAN. It makes it easier for them to fill out Form 10F.
What details do you need to provide Form 10F?
When filing Form 10F online, you register on the income tax portal, get a digital signature certificate (DSC), and fill in details like your status (individual, company, etc.), nationality, tax identification number from your home country, and your address during the period mentioned in the TRC.
You also need to promise that the info is correct, and if you have a PAN or Aadhaar number, mention that too.
Why bother with Form 10F?
By doing this, you make sure you’re not using tax treaties wrongly and help the tax department keep track of payments to non-residents. If you don’t follow the rules, the tax folks might send you notices and ask you to sort things out in India.
So, if you’re a non-resident getting money from India, make sure you know about Form 10F and TRC. Keep an eye on any changes in how to submit the form, and this way, you can avoid paying tax twice and lower your tax bill in India.
If you’re a business paying non-residents in India, these rules are essential to keep in mind.
Still got questions to ask? Send them at sales@finsmartaccounting.com and get a quick reply from accounting experts.
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India Business Head
Mrs. Dipali Phadke is a qualified Chartered Accountant with more than 20+ years of experience in the field of Accounting, Taxation and Payroll. She is the backbone of Company’s Operations and heads India Business at Finsmart Accounting
