Mar 11, 2025, Posted by Admin

DTAA Benefits for NRIs: How to Claim Tax Relief on Income Earned in India

How to Claim DTAA Benefits on Income Earned from India

If you're earning income from India but are not a resident, you might be surprised to learn that Indian tax laws still apply to you, when you receive payments from an Indian entity, a portion of your income is deducted as Tax Deducted at Source (TDS), also known as Withholding Tax (WHT). This means that the amount you receive is less than what you originally billed for.

How to Claim DTAA Benefits?

To claim DTAA benefits and reduce your tax burden, you’ll need to provide the following key documents:

1. Tax Residency Certificate (TRC)

This is the most important document to claim DTAA benefits. It is issued by the tax authority of your home country and serves as proof that you are a tax resident there. Your TRC must include:
Name
Address
Tax Identification Number (TIN)
Residency Status

2. Form 10F

If your TRC is missing any required details, you’ll need to electronically file Form 10F with the Indian Income Tax Department. This ensures your eligibility for DTAA benefits.

Common Types of Income Subject to TDS

If you're a non-resident, your income from the following sources in India is liable for TDS:
• Royalty payments
• Interest income
• Dividend income
• Professional or technical service fees
But there’s good news! If you’re a resident of a country that has a Double Taxation Avoidance Agreement (DTAA) with India, you may be eligible for lower tax rates on these types of income. India has DTAA agreements with over 85 countries, helping taxpayers avoid paying tax twice on the same income.

How to File Form 10F Electronically in India?

As a non-resident, you must submit Form 10F electronically through the Indian income tax e-filing portal. The following details are required:
Name
Date of Incorporation
Tax Identification Number (TIN)
Country of Residence
Name of Key Person
Date of Birth of Key Person
TIN of Key Person
Designation
Mobile Number
Email ID
Address
Proof of TIN for both the company and key individuals

Important Considerations

Digital Signature Certificate (DSC): Non-residents must digitally sign Form 10F using a DSC obtained in India.
Verification Process: Ensure that the authorized signatory's contact details are accurate for OTP verification.
Mandatory E-Filing: As of October 1, 2023, manual submissions of Form 10F are no longer accepted. All filings must be done electronically, irrespective of PAN availability.

By following these steps, non-resident taxpayers can efficiently file Form 10F electronically, ensuring compliance and facilitating the claiming of DTAA benefits.

While filing Form 10F might seem straightforward, any mistakes in your application can lead to delays or even rejections. Since Indian tax laws can be complex, missing out on critical information could result in a higher tax deduction than necessary.

At Jain Anurag Associates, Chartered Accountants we specialize in international tax compliance and help individuals and businesses claim DTAA tax benefits. Our team ensures that your Form 10F is filed correctly, so you can enjoy lower tax rates on your Indian income. If you need assistance with Form 10F compliance or have questions about DTAA benefits, contact Jain Anurag Associates today. We'll help you navigate the process seamlessly!

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