The income tax department, in a statement, has advised that Non-residents not having PAN can file Form 10F manually till 31st March 2023 instead of electronically as per the recent relaxation notification issued by the Central Board of Direct Taxes ( CBDT ).
“Form 10F: Partial relaxation is provided to Non-residents not having PAN and not required to have it under the provisions of Income Tax Act, 1961. They can file Form 10F manually till 31st March 2023 instead of electronically as being allowed prior to issuance of DGIT(System) Notification No. 03/2022 dt. 16th July 2022. Refer Relaxation Notification,” the income tax department stated via the official portal.
The Notification issued by Directorate of Income Tax (Systems) New Delhi last week stated that in exercise of powers conferred under Rule 131(1)/(2) of the Income-tax Rules had mandated furnishing of Form 10F electronically. Many practical challenges were faced by the NRI taxpayers without a PAN Card as a result of this.
According to sub-section 4 and sub-section 5 of section 90 of the Income Tax Act, a non-resident (NR) taxpayer must submit Form 10F, TRC, and other information if they wish to claim DTAA benefits which India and the country where they reside entered into.
Form 10F is mandatorily filed by those NRI taxpayers who do not have the required details of the Tax Residency Certificate (mandated under the Double Taxation Avoidance Agreement) as well as PAN. Remember TDS is deducted at a higher rate if PAN is not available with an individual.
Rule 21AB of the IT Rules has notified Form 10F. In a recent move, the CBDT has mandated the e-filing of various forms including Form 10F on the Income Tax e-Filing Portal vide Notification No. 03/2022 dated 16.07. 2022 effective on an immediate basis.
If the TRC issued by the Government authority contains all the information as prescribed above (Form 10F), it will be accepted. If not, in addition to the TRC, the Non-resident will have to provide a self-certified Form 10F providing the details as stated above.
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