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How can you obtain a Tax Residency Certificate (TRC) in India?

How can you obtain a Tax Residency Certificate (TRC) in India?

Are you an Indian resident and have earned income outside India? If yes, then you need to pay tax in India. But since the global income of resident is taxable in India, your income may be taxed in India as well as the source country. This phenomenon is called Double Taxation.

However, In order to reduce the burden of double taxation, India has agreements with different countries which is known as Double Taxation Avoidance Agreements (DTAA).DTAA  basically provides relief from double taxation of income between the countries with the agreement.


Benefits of DTAA can not be claimed without a Tax Residency Certificate.


So, How do you obtain a Tax Residency Certificate (TRC)?


If you have earned income from outside India, you have to obtain TRC from the income tax department to claim relief under DTAA. You have to visit the assessing officer of your jurisdiction and submit the application physically along with the supporting documents. 


Let’s discuss how to obtain TRC to avail benefits of DTAA. TRC can be obtained in three simple steps


1. Fill an  application:

You have to make an application in ‘Form No. 10FA. You will have to fill some basic information like name, address, status- whether company/individual/firm, PAN/TAN, basis for the residency in India, purpose and period for which you need TRC.


2. Submit Application ‘Form 10FA’

Visit your assessing officer and submit your application ‘Form 10FA’ along with the supporting documents.


3. Obtain TRC

Once you make an application, assessing Officer will issue TRC in Form 10FB after the verification of your submission.


What documents are required to be submitted along with the application?

As regards the documents that you need to submit along with the application, you will only require the supporting documents which prove your income in the source country. Since you have to physically present before the Assessing Officer, he may ask such documents as he deems necessary.  


How long does it take to obtain a TRC after Application?


It takes 15 days to 30 days to proceed with your application and obtain TRC.


Hope it helps you

Thank You.