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Income Tax
Income Tax , by Jeeba Lal  on : Dec. 24, 2018

Income Tax

It will be costly if you do not have a Tax residency certificate for foreign income.

It will be costly if you do not have a Tax residency certificate for foreign income.

In order to claim a benefit of Tax Treaty, you should produce TRC to the foreign entity. So before receiving payment, produce tax residency certificate to the foreign entity in order to avail benefits of Tax Treaty signed between the countries.




Are you a Indian resident? And


Do you have income from foreign country?

If yes,


Your income is taxable in India as resident's global income is taxable in India.


Obviously, you also have to pay tax in source country as well.


In such case, TRC is your guard that shield you from burden of double tax.


What the Tax Residency Certificate(TRC) does?


  • You can claim relief under the Double Taxation Avoidance Agreements (DTAA).


  • You will be saved from double taxation between the countries where the income is taxed.



How can you get the TRC?

 You have to make an application in Form 10FA to the income-tax authorities. And the Tax Authority will issue the certificate in Form 10FB.


I will discuss the procedures to obtain TRC in my next article.


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