Tax Residency Certificate for NRIs: how to get and use it
A Tax Residency Certificate (TRC) is issued by the tax authority of an NRI's country of residence and proves tax residence there. NRIs submit TRC along with Form 10F to payers (banks, tenants, companies) or the Income Tax Assessing Officer to claim DTAA benefits — lower TDS on NRO interest, rent, dividends or royalties.
TRC + Form 10F unlocks DTAA lower TDS rates
A Tax Residency Certificate (TRC) is obtained from the tax authority in your country of residence — IRS (USA), HMRC (UK), IRAS (Singapore), FTA (UAE). Submit TRC with Form 10F to your Indian bank or payer to claim DTAA-reduced TDS rates on NRO interest, rent and other income. Form 10F is now filed online on the Income Tax portal.
Key points
- Issued by your country's tax authority — TRC comes from IRS (USA), HMRC (UK), IRAS (Singapore), UAE FTA, etc. — not from India.
- Submit with Form 10F to payer — Provide TRC + Form 10F to your Indian bank or employer to get reduced TDS under the applicable DTAA.
- Form 10F filed online in India — Since September 2023, Form 10F must be submitted online on the Income Tax e-filing portal — physical submission is no longer accepted.
Step-by-step: obtaining and using TRC
Step 1: Apply for a TRC from the tax authority in your country of residence — process varies by country.
USA: IRS Form 8802 (Application for United States Residency Certification) — fee applies, takes 4–6 weeks.
UK: HMRC issues a Certificate of Residence — request online via the HMRC portal.
Singapore: IRAS issues a Certificate of Residence — apply online via MyTax Portal.
UAE: FTA issues a Tax Residency Certificate — apply online at tax.gov.ae.
Step 2: File Form 10F online on the Indian Income Tax e-filing portal (e-File > Income Tax Forms > Form 10F). You will need your PAN, the TRC details and the payer's (bank/company) information.
Step 3: Download the Form 10F acknowledgement and submit it along with the TRC to your Indian bank, tenant, company or other payer. The payer then deducts TDS at the DTAA rate.
Step 4: Keep TRC and Form 10F for each financial year — they must be renewed annually.
Which income benefits from TRC + Form 10F
NRO bank interest: standard TDS is ~31.2%. With valid TRC, many DTAAs reduce this to 10–15% (varies by treaty). Check the 'Interest' article of your country's DTAA with India.
Rent from Indian property: standard TDS is ~31.2%. DTAA may reduce this.
Dividends from Indian companies: standard TDS is 20%. DTAA may reduce to 10–15%.
Royalties and technical services fees: standard TDS is 10–20%. DTAA rates vary.
NRE interest: exempt from Indian tax regardless — no TRC needed for NRE.
Frequently asked questions
Do I need a TRC every year?
TRC and Form 10F are typically renewed annually — the TRC usually covers a specific tax year in your country of residence. Obtain a fresh TRC for each Indian financial year where you want to claim DTAA benefits.
What if my country does not have a DTAA with India?
Without a DTAA, standard TDS rates apply. TRC is not useful without a treaty. Check the Income Tax department's list of countries with which India has active DTAAs.
Can I file Form 10F without a PAN?
From September 2023, Form 10F requires online filing using your PAN login. NRIs without PAN must apply for PAN first before filing Form 10F online.