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Residency Certificate for Tax Purposes

Neethi V. Kannanth , Last updated: 23 February 2024  
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The Government of India has entered into agreement with various countries and specified territories to provide relief from double taxation of income. This agreement is known as Double Taxation Avoidance Agreement (DTAA). In order to obtain the relief from double taxation of income under DTAA, one must obtain a certificate of residence known as Tax Residency Certificate.

What Is a Tax Residency Certificate?

Tax Residency Certificate is issued by the Income Tax Department to Indian Residents. It enables the taxpayer to establish their residential status. This helps the foreign entity to pass the benefit of DTAA to the Indian Residents.

Validity of Tax Residency Certificate

Tax Residency Certificate once issued is valid for an entire financial year.

Tax Resident Certificate

How to obtain a Tax Residency Certificate?

If the applicant is a resident in India, then he/she should file form 10FA and if the applicant is a non-resident, then he/she should file Form 10F to the Jurisdictional Assessing Officer for obtaining Tax Residency Certificate. A person shall be resident in India if he satisfies any of the following 2 conditions-

  1. Stayed in India in the previous year for a period of 182 days or more.
  2. Stayed in India for 60 days or more in the previous year and 365 days or more in the four years immediately preceding previous year.

The following details must be furnished while filing the application-

  1. Name
  2. Status of the taxpayer i.e whether individual, company, firm etc.
  3. Nationality or country of incorporation.
  4. Unique Identification Number from which the Government of taxpayer or resident country identifies the taxpayer
  5. Period for which the residential status, as mentioned in the certificate is applicable
  6. Address of the assessee in the country or specified territory outside India, during the period for which the certificate is applicable.
 

The assessee is required to maintain and provide all the documents in support of the information furnished in the application.

If the Jurisdictional Assessing Officer is satisfied with the application filed then he shall provide Tax Residency Certificate in Form 10FB.

Format of Application for Tax Residency Certificate

Form 10FA

[See rule 21AB (3)]

Application for Certificate of residence for the purposes of an agreement under section 90 and 90A of the Income-tax Act, 1961

To

The Assessing Officer,.

 

Sir,

I request that a certificate of residence in Form No. 10FB be granted in my case/in the case of [for person other than individual]

2. The relevant details in this regard are as under: -

Full Name and address of the applicant ______________
Status (State whether individual, Hindu undivided family, firm, body of individuals, company etc.) ______________
Nationality (in case of individual) ______________
Country of incorporation/registration (in case of others). ______________
Address of the applicant during the period for which TRC is desired ______________
Email id ______________
Permanent Account Number or Aadhaar Number/TAN (if applicable) ______________
Basis on which the status of being resident in India is claimed ______________
Period for which the residence certificate is applicable ______________
Purpose of obtaining Tax Residency Certificate (must be specified) ______________
Any other detail ______________

3. The following document in support are enclosed:-

  1. …………
  2. …………
  3. ………..

I, [full name in block letters] son/daughter of , in the capacity of [designation for person other than individual], verify that to the best of my knowledge and belief, the information given in this form is correct and complete and that the other particulars shown therein are truly stated.

Verified today the day of

Place: Signature of the Applicant

Name

Format of Tax Residency Certificate

In case your application for the certificate of residency is approved, here’s how the Assessing Officer will issue your TRC:

FORM No. 10FB

Certificate of residence for the purpose of Section 90 and 90A

1 Name of the person ______________
2 Status ______________
3 PAN (Permanent Account Number) ______________
4 Address of the person during the period of Tax Residency Certificate ______________

Certificate

It is hereby certified that the above-mentioned person is a resident of India for the purposes of the Income Tax Act, 1961.

This certificate is valid for the period ________.
Issued on _____ the day of ______, ________.

[Name of the Assessing Officer]
[Designation]
[*Seal*]

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