Services >> International Taxation >> Tax Residency Certificate (TRC), Foreign PAN, Assistance in return filing for foreign PAN

Tax Residency Certificate (TRC)

Tax Residency Certificate is issued by the Department of Income Tax of India to the Indian residents having income source in countries with whom India has an agreement for the avoidance of double taxation, known as the Double Taxation Avoidance Agreement.

Concept of TRC simplified for you:

  • TRC for Indian Resident taxpayer:
    An Indian resident earning income from other countries with which India has a DTAA can obtain a TRC from the Indian income tax department. Such Indian residents may submit the same in order to claim the tax treaty benefits.
  • TRC for Non-Resident taxpayer:
    Any person who is a non-resident, as per Indian income tax law, shall obtain a TRC from the government of the country or the specified territory of which he claims to be a resident.

BCL India offers complete support in obtaining TRC certificate through assistance in registration, document preparation, and publishing of mandated forms. In addition, we deliver advisory services in DTAA enabling profitable tax solutions to cater your global business growth.

TRC Application Forms:

  • Form 10 FA
    To fill an application for a Certificate of Residency and avail the benefits of the agreement referred to in Section 90 & section 90 A of the Income Tax Act of the Income Tax Act of 1961.
  • Form 10 FB
    On the receipt of the application by scrutinizing the documents proving the eligibility, the authorities will issue a certificate of residence in Form No. 10FB.

Benefits of TRC

  • A foreign tax deduction can be avoided when applying for TRC to their foreign tax authorities.
  • TRC gives the right to the tax authorities to check the tax beneficiary under the agreement (DTAA).

The certificate speeds up the complete payment process as the specified format will let the international residents realize the appropriate requirements to receive tax credits.

Foreign PAN

Permanent Account Number (PAN) is obtained from the Income Tax Department of India by any person or entity that are involved in business or having income source in India. Permanent Account Number helps the authorities track the financial transactions including tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and many other.

We handle the paperwork for all of our international clients, including application preparation and ensuring that all required documentation is submitted in a timely manner to avoid rejection.

The mandatory requirement to obtain PAN falls on:

  • Existing assessees / taxpayers / persons required to furnish a return of income, even on behalf of others.
  • Any person or entity carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed five lakh rupees in any previous year
  • Any person or entity, who intends to enter into financial transaction where quoting PAN is mandatory

Application:

  • Form 49AA
    This is the mandatory filing to be made if the applicants are Individuals not being a Citizen of India/Entities incorporated outside India/ Unincorporated entities formed outside India.
  • Documents
    Documents that serves as a proof of identity and proof of address are to be submitted by the applicant along with Form 49AA

Assistance in return filing for foreign PAN

  • Foreign Companies who have taxable income in India are supposed to file the return of Income in India. The aforementioned requirement only applies if tax is withheld at the rates specified under the DTAA; it does not apply if tax is withheld at the rates specified under the Indian Income Tax Act.
  • Non-Resident Indians (NRIs), Overseas Indians (OCIs), Persons of Indian Origin (PIOs), and Foreign Citizens Residing In India (Expatriates) are constantly worried about the compliance with laws and regulations. One of the requirements is the filing of income tax returns (ITRs).
  • Income tax return filing is a crucial, necessary, and frequent compliance in India. For the purpose of paying taxes, reporting their income, and other financial transactions, all NRIs, OCIs, and expatriates must submit an ITR in India. Furthermore, ITR filing is required in order to request a tax refund for TDS taken.
  • The Income Tax authorities have recently been issuing notices to foreign companies and non-residents and asking that they file returns of income in India based on data gathered through withholding tax returns (Form 27Q) filed by Indian entities. 
  • We, BCL India, have a dedicated team that assists foreign companies, NRIs and other foreign citizens with their tax-related needs (including ITR filing etc). Reach out to us for any matters on your income tax return filing. 

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