Big relief for Non-resident taxpayers | Exemption from e-filing Form 10F till 31st March 2023

If non-residents (NR) want to avail the double taxation (DTAA) benefits, then they are required to present a Tax Residency Certificate (TRC). However, if some facts required by the Income Tax department are not present in the TRC, the NR taxpayers must provide additional papers and information in Form 10F.

Background

Earlier this year, CBDT had mandated Form 10F to be e-filed on the income tax portal.

The NR taxpayer must also attach his TRC along with Form 10F. While the notification resolves a long-standing issue of how to file Form 10F and TRC, it also imposes compliance obligations and poses practical difficulties. Because filing it on the income tax portal would require their PAN for login (which may not always be required otherwise).

Current notification

The Central Board of Direct Taxes (CBDT) recently notified that NRIs without PAN are not required to mandatorily e-file Form 10F. This relief has been granted till 31 March 2023. 

Implications

This is a partial relief as the NR taxpayers will still be required to file Form 10F manually till 31 March 2023. Taxpayers will have to wait for future developments to know if e-filing will become mandatory post-March 2023. 

For any clarifications/feedback on the topic, please contact the writer at ektha.surana@clear.in

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