A complete guide on Filing Form 10F by Non-Residents not having PANs

Introduction

The Central Board of Direct Taxes (CBDT) published a notice on December 12, 2022, granting one-time relief to non-resident taxpayers not having PAN and the necessary information in the Tax Residency Certificate. To claim benefits under the DTAA(Double Taxation Avoidance Agreement), such taxpayers must submit Form 10F. This form needs to be submitted before the deadline, which is March 31, 2023.

What is Form 10F?

Form 10F is used to prove your identification and that you pay taxes in the country in which you live permanently. Your tax residence certificate should both list the same time period that you are a resident of that region. NRI taxpayers who are without the necessary information from the Tax Residency Certificate and PAN are required to fill out the Form.

Why is it important to file Form 10F?

• Form 10F would enable them to claim Tax Deducted at Source (TDS) at a reduced rate.
• The income tax department had mandated Form 10F, back in July for NRIs to facilitate them by reducing TDS.
• Non-resident taxpayers who do not have a PAN and who receive payments from India must complete the Form by filing the necessary information from the NRI’s Tax Residency Certificate.
• Form 10F facilitates NRIs in avoiding TDS on payments made or received from India.
• The Central Board of Direct Taxes (CBDT) announced that non-resident taxpayers who do not have a PAN Card are exempt from the requirement to electronically file Form 10F until March 31, 2023, in accordance with the applicable provisions of the Income Tax Act and Rules.
• “The partial relaxation notified by the CBDT would surely minimize the compliance obstacles regarding the requirement of obtaining PAN by non-residents, only for the purpose of obtaining electronic 10F.

Information that must be included in Form 10F:

• Status of the assessee (individual, business, firm, etc.);
• Assessee’s Permanent Account Number (PAN)
• Nationality (in the case of an individual) or Country or specified territory of organization or registration (in the case of others);
• A unique tax identification number (or the assessee’s tax identification number in the country of residence);
• The period during which the resident status is applicable;
• Address of the assessee in a country of residency.

How to file Form 10F?

Form 10F must be submitted through the Non-resident e-filing account on the income tax e-filing portal. The non-resident assessee (deductee) must submit the Form via the e-filing site by following the steps listed below.

• Visit https://www.incometax.gov.in/iec/fo portal to access your income tax portal account.
• Select “Income Tax Forms” from the e-file tab, and then click “File Income Tax Forms.”
• In the drop-down menu, choose “Persons not dependent on any Source of Income (Source of Income not essential)”
• Choose Form 10F from the list of available forms.
• Click on “Continue” after selecting the relevant Assessment Year (AY) in the tab.
• The assessee would have to provide the necessary information and must also include a copy of the TRC (Tax Residence Certificate).
• According to Rule 131 of the IT Rules, It can be signed using either a digital signature (generally if the return of income is required to be provided under a digital signature) or an electronic verification code.

Conclusion

The relaxation to file Form 10F manually has been offered by the CBDT as NRIs without PAN were unable to file this form online on the e-filing income tax portal but as per the notification issued by the CBDT, non-resident taxpayers who want to avail of the benefit of DTAA provisions can file Form 10F manually till March 31, 2023, if they do not have PAN and they are not required to apply for PAN as per the Income-tax Act provisions.