ITR
Claiming tax treaty benefit as an NRI
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Facts
If a tax treaty gives a lower rate, you can claim it by keeping a tax residency certificate from your country and filing Form 10F (now Form 41) on the e-Filing portal.
Provisions and law
- Sec 90, Income-tax Act 1961 (now Sec 159, Income-tax Act 2025)Relief under tax treaties.
- Rule 21AB, Income-tax Rules 1962 (now Rule 75, Income-tax Rules 2026)Prescribes documents for treaty relief, including Form 10F.
Analysis
Check the treaty article for interest, dividend or capital gains. If the treaty rate is lower than Indian rates, claim it in the return. Give the TRC and Form 10F to payers so they deduct less TDS. Keep copies.
Conclusion
- Get a tax residency certificate.
- File Form 10F on the portal.
- Claim the treaty rate in ITR-2.
- Give copies to payers.
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