NRIs not required to e-file Form 10F till March 2023 — How will taxpayers benefit?



Non-residents (NRs) get partial relief after CBDT extended the time to file form 10F until March 31, 2023. Read this to understand what exactly is this form and who is required to file it?

The Central Board of Direct Taxes (CBDT) has recently said that non-resident Individuals (NRIs) not having Permanent Account Number (PAN) are not mandatorily required to e-file Form 10F. They can instead do it manually. However, this relief has been granted till March 31, 2023 only and taxpayers will have to wait for future developments to know if e-filing will become mandatory post that.

“On consideration of the practical challenge being faced by non-resident (NR) taxpayers not having PAN in making compliance and with a view to mitigate genuine hardship to such taxpayers, it has been decided by the Competent Authority that certain category of Non-resident taxpayers who are not having PAN and are not required to have PAN as per relevant provisions of the Income-tax Act, 1961 read with Income-tax rules, 1962 are exempted from mandatory electronic filing of Form 10F till March 31, 2023," the notification read.

"For sake of clarity, it is reiterated that such category of taxpayers may make statutory compliance of filing Form 10F till March 31, 2023, in manual form as was being done prior to issuance of the DGIT (Systems) Notifications no.3 of 20

So, what exactly is this Form 10F?

A person who earns income is required pay tax in the country he/she earns in as well as the country he/she resides in. In order to avoid this, India has signed Double Taxation Avoidance Agreements (DTAAs) with many countries so that the income is taxed only once. To claim this benefit, taxpayers are required to file Form 10F.

How to get this form?

This form has to be furnished online on the Income Tax e-Filing Portal. It can also be obtained from banks.

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How will NRIs benefit with the new notification?

NRIs faced compliance burden with mandatory e-filing of Form 10F. They were required to obtain a PAN card in India (also in cases where they don't need to) and a digital signature certificate (DSC), which had to be renewed periodically. With this partial relief, NRI taxpayers who do not have a PAN card can still use the physical method of filing Form 10F.(ads2)

What is required to fill Form 10F?

Form 10F requires basic information of the taxpayer and the Tax Residency Certificate (TRC), such as the legal status, address, country of incorporation/birth, PAN (if applicable), unique tax identification number in the country of residence and the period for which the TRC is applicable.

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