A client in Houston sold a flat in Pune and watched the buyer deduct TDS at close to a quarter of the sale value.
He had a US tax return, an Indian PAN, and a firm belief that the India-US treaty protected him. It does. But he had never filed the one small form that lets India apply it.
That is the whole story of the Tax Residency Certificate. The treaty benefit exists. Getting it requires two pieces of paper that most NRIs confuse with each other.
⚡ Quick Answer
To claim DTAA relief in India you need two things. A Tax Residency Certificate issued by the tax authority of the country you live in, such as the IRS, HMRC or the UAE Ministry of Finance. And Form 10F, an Indian self-declaration you now file online on the income tax e-filing portal. The TRC comes from abroad. Form 10F is filed in India. Neither one works without the other, and both are needed before the deductor pays you, not after.
Read – India Tax for NRIs on Indian Income
What a TRC actually is
A Tax Residency Certificate is your host country’s tax authority stating, on record, that you were tax resident there for a stated period.
Think of it as a boarding pass. The treaty is the flight. The TRC is what lets you through the gate. Without it, the gate staff have no way to know which flight you belong on, so they charge you the full fare.
It is issued by the foreign authority, never by India. If you live in Dubai, you apply to the UAE Ministry of Finance. In the US, you file Form 8802 and receive Form 6166 from the IRS. In the UK, you request a certificate of residence from HMRC.
The one thing that surprises people is the lead time. IRS certificates routinely take six to eight weeks. Start before the transaction, not while your buyer is waiting at the sub-registrar’s office.
What has to be on it
Indian rules expect a TRC to carry:
- Your name and status – individual, company, firm
- Nationality
- Tax Identification Number in the country of residence, or an equivalent unique ID
- The period for which residency is certified
- Your address during that period
Many foreign certificates are shorter than this. That gap is exactly what Form 10F fills.
Form 10F, 10FA and 10FB: which one is actually yours
Non-residents do not file Form 10FA. That form belongs to Indian residents, and mixing up the two is the most common mistake on this subject.
| Form | Who uses it | Purpose |
|---|---|---|
| Foreign TRC | Every NRI claiming DTAA relief in India | Proof of residence, issued abroad |
| Form 10F | Non-residents | Indian self-declaration filling gaps in the TRC. Filed online |
| Form 10FA | Residents of India | Application to the Indian tax officer for an Indian TRC |
| Form 10FB | Issued by the Indian tax officer | The Indian TRC itself |
So 10FA and 10FB run in the opposite direction. They are for an Indian resident who needs to prove Indian residency abroad. If you live in Sharjah and earn rent in Chennai, they are not your forms.
Form 10F is now filed online on the income tax e-filing portal, not handed over as a signed PDF. It is submitted under your login, verified electronically, and generates an acknowledgement you pass to your deductor.
The useful change for NRIs is that a non-resident without an Indian PAN can register on the portal under the category for non-residents not holding PAN, and file Form 10F that way. Before this, no PAN meant no online filing meant no relief.
With the Income Tax Act 2025 in force from 1 April 2026, this declaration carries forward under a renumbered form. The substance is unchanged, a TRC plus a declaration. Check the portal for the current form number on the day you file.
What DTAA relief is actually worth
Numbers make this concrete. Without treaty relief, NRO interest paid to a non-resident carries TDS at 30% plus surcharge and cess. Under several treaties, interest is capped at a lower rate.
You will often see a move from 30% to 15% described as a “100% saving”. It is not. It halves your withholding. Halving is worth having, but the arithmetic matters when you are planning cash flow.
Treaty rates differ by country and by income type. The India-US treaty caps interest at 15%. The India-UAE treaty has its own rates, and residents of the UAE need to be careful because the UAE issues TRCs only where you meet its own residence tests. A visa stamp is not enough.
Also understand what the treaty does not do. It does not make Indian income tax free. It allocates taxing rights and caps rates, and gives you credit in your home country for tax paid in India. Anyone promising you zero is selling something.
Which incomes this covers
Most treaties deal with the same list, though rates and wording vary:
- Interest on deposits and bonds
- Dividends
- Salary, including split-year situations
- Capital gains, short and long term
- Royalties, licence fees and technical or consultancy fees
- Business income, subject to permanent establishment rules
- Rent from Indian property
Related – How NRIs Can Save Tax on Indian Income
Timing beats paperwork, every time
On NRO deposits of Rs 80 lakh yielding around 7%, that is Rs 5.6 lakh of annual interest. At 30% plus cess the bank withholds about Rs 1.75 lakh. Under a treaty rate of 15%, roughly Rs 87,000. The Rs 88,000 gap is not lost either way, because you can claim it back in your return. What you lose by filing late is the use of that money for twelve to eighteen months. Where I see real damage is property. On a Rs 2 crore sale, the difference between a certificate obtained under section 197 in advance and TDS deducted on the gross consideration can be twenty to thirty lakh rupees parked with the department for a year.
Nobody argues about the tax. They argue about how long their own money was locked away.
Why NRIs skip this until it hurts
Optimism bias is doing the work here. You assume the deduction will be reasonable, the bank will apply the treaty, and if not, the refund will come quickly.
None of those assumptions hold. A bank’s system applies the default rate unless it has a valid TRC and Form 10F on file. It has no discretion and no interest in your treaty position. Refunds take as long as they take.
The asymmetry is stark. Getting the paperwork in place costs a few weeks and a small fee. Not having it costs you the use of lakhs for a year, plus a return you now have to defend.
Put a calendar entry for April. TRC is annual. It expires quietly.
Paying more Indian tax than the treaty requires?
Residency, treaty position and withholding should be planned before the money moves, not reconstructed afterwards.
Frequently asked questions
Do I need both a TRC and Form 10F?
Yes, in practice. Form 10F is technically required when the TRC is missing prescribed details, but most foreign certificates are, so deductors ask for both as standard.
Can I file Form 10F without an Indian PAN?
Yes. Non-residents can register on the e-filing portal under the category for those not holding PAN and file from there.
How long is a TRC valid?
It certifies a specific period, usually one year. You obtain a fresh one each year and give it to every deductor who needs it.
My country does not tax personal income. Can I still get a TRC?
Sometimes. The UAE, for example, issues TRCs where you satisfy its own residence conditions. Meeting those conditions is a genuine test, not a formality.
What if the deductor has already withheld at the higher rate?
You claim the excess as a refund when you file your Indian return. You get the money, just much later. For property, a section 197 lower deduction certificate obtained before the sale is the better route.
Does a TRC reduce my tax or only my TDS?
Both, where the treaty caps the rate on that income. In several cases it changes the withholding rate and the final liability together.
Also read – Do NRIs Need to File Tax Returns in India? and RNOR Status
My Houston client got his refund. It arrived fourteen months later, in a year when he needed that money for his daughter’s tuition and had to borrow instead.
The treaty was always on his side. The paperwork was not.
💬 Your Turn
Have you ever had TDS deducted at the full rate because a certificate was not on file, and how long did the refund actually take?
I need Tax residency certificate
Hey Yusuf,
To obtain a Tax Residency Certificate, you need to contact the relevant tax authority in your country of residence or the tax authority of the country where you are seeking tax residency status. The specific process and requirements for obtaining a Tax Residency Certificate may vary depending on the country’s tax laws and regulations.
i am doing a booth construction for an indian company – they will wire money to me for the work done – that are asking me to send them a DTAHow do i get a DTA
Hi Nigam
If an Indian company is asking you to provide a DTA (Double Taxation Avoidance) certificate, it means that they want to ensure that they are not liable to pay taxes in both India and the country where you are resident.
To obtain a DTA certificate, you will need to submit an application to the tax authorities in your country of residence. The process for obtaining a DTA certificate may vary depending on the country, but in general, you will need to provide the following information:
1.Your personal details, such as your name, address, and tax identification number.
2.Details of the Indian company, such as their name, address, and tax identification number.
3.Details of the work that you are doing for the Indian company, including the duration of the project and the payment terms.
4.A copy of the contract or agreement between you and the Indian company.
5.Any other relevant documents, such as invoices or receipts.
I am an Indian citizen working in Hungary. I guess i need to get the TRC from Hungary?
Hi Biplab,
As an Indian citizen working in Hungary, you will likely need to obtain a Hungarian Residence Permit (also known as a “TRC” or “Temporary Residence Card”) in order to legally live and work in the country. The specific requirements and process for obtaining a TRC will depend on your individual circumstances, such as the length of your stay and the reason for your move to Hungary. It is best to check with the Hungarian immigration authorities for specific guidance and to gather required documents to apply.
Daughter of Indian Citizen, currently an NRI and by way of a will and he is no more has included her name along with her mother as legal heir for his flat. Is there any legal problems for her to sell along with her mother. Both together on his death has obtained a legal heir certificate. Please revert.
Can NRI (US citizen) gift a flat or property to a US green card holder?
Hi Ramesh,
Yes.
Please help us with the below documents required to transfer the Royalty fee of uniforms as per Indian banking Rules & Law-:Tax Residence Certificate (TRC)is needed in order to benefit from the application of double tax treaties and comply with local tax regulations.2. NO PE IN INDIA Certificate- A Certificate to be provided by a Non Resident.3. FORM 10F Certificate- Form 10F must be verified by the government of the country in which the assessee is a resident for the period applicable. It is a declaration that the assessee resided in the foreign country which is covered under a DTAA with India and hence, the tax rate applicable to the income is at the rate mentioned in the DTAA (Double Taxation Avoidance Agreement).
If i am NRI residing in Dubai, TRC will help cut taxes on my investment in India?
A Indian origin person live in US since 1999. He is not resident of India. Now he is selling a property in Indian. So he has required TRC. The question is can he apply for TRC in India even he is non resident in India?
Hi Arif,
Yes, He can apply.
This is my first year in usa. My only income in India is interest and Rs 360/ dividend. It is below exemption limit. I have to file return to get TDS refund. How to show dividend income. I have not obtained TRC. When i tried to file return. It shows error related to double taxation treaty. How to avoid this error.
Hi S K Goyal,
Kindly consult with your CA.
Do you help with filing tax returns for NRIs?
Hi Rohit,
Yes, You can drop your contact here, we will reach you out.
How to apply for tax Residence Certificate? Online or offline
Hi NJ Shaikh,
To obtain one, you may approach the competent Income Tax authority of the country where you reside, like the IRS in the USA or the HMRC in the UK, to obtain a TRC.
Do i hv pay if i receive my gift from uk
Hi Shilpa,
If you have recieved the gift from your close relatives then you don’t need to pay the tax.
You can read the below article for more clearity.
https://www.wisenri.com/nri-gift-resident-indian-tax/
OCI planning to take permanent residence in India. Will I be taxed on my USA Social Security Income in India ?
Hi Maria,
No you will not be taxed on your USA social security income in India. There are some tax treatments which allows you to avoid double taxations.
I am an NRI staying in Singapore how I can get TRC? Whom I need to contact for TRC like Singapore government or Indian government
I need TRC Tax Residency Certificate
Hii Periyasamy Ji
To obtain Tax Residency Certificate you may approach the competent Income Tax authority of the country where you reside.
You must check with your financial advisor, the CA, or the CPA to avoid missing any deadlines and lapses in the procedure to obtain a TRC. Your financial advisor or the local bank, where you have your local bank account, may help you with the format to apply for TRC in the country of residence.
I’m doing as postdoctoral researcher in Spain. I need to avail TRC to avoid double taxation here in spain. Is it possible to apply for TRC from spain itself or do i need to be present physically in india to apply for the same?
Someone in India receives an inheritance from the Netherlands and now I need a ‘Tax Residence Certificate I was wondering if I can use the Form No. 10 FA?
I am a resident of India , I need to submit a TRC from India . Can I just fill form 10F and submit to AO online? or does it have to be a physical submission?
Hi Sreemamenon,
As per my knowledge, you have to submit it physically.
How can I get residency certificate from USA for the Financial year 2021-22 in India because it is given by IRS after end of financial year 2020 FY ending on 31st Dec every year
Hi Rakesh,
You should approach a local tax advisor in the USA for this.
I will be returning back to india from Oman in july-2021 first week. if any money transfer to NRE account before that will be considered under taxable for the financial year 2021-22? I am only eligible for the pay tax on indian income only after july-2021 onwards. Am i right?
Hi Jatin,
After staying more than 182 days in India you will be considered a resident of India & if you receive any income in India then it will be taxable.
it return filing
i am nri since 2006 i have not filed it return in india what to do now i have nre account in india in some banks and have nre fd in those account
Hi Dipak,
Interest in NRE FD is exempted from tax. If you have an income in India that is more than Rs 2.5 lakh in an FY then you should file the ITR.
Banks and companies request a TRC to apply concessional tax rates to the current year income. But the issue is that the TRC for the curreny year is only issued AFTER the year is completed or AFTER 182 days of the current year had elapsed. Meanwhile the tax has already been deducted at normal rates for those 182 days.