What is a Tax Residency Certificate?
A Tax Residency Certificate (TRC) is issued by the tax authority of your country of residence to confirm that you are a resident there for the year. India requires it, with Form 10F, to apply a treaty rate. Each country has its own process; some issue it online.
What is Form 10F?
Form 10F is a statement that gives details required for the treaty claim, such as your status, tax identification number and period of residence. Since 2022 it must be filed electronically on the Income Tax portal in many cases. We help file it and give the acknowledgement to the payer.
Can I claim credit for US tax in India?
Yes, if you are an Indian resident with US-taxed income, or if you want India credit for foreign tax, with Form 67 and proofs. The credit cannot exceed the Indian tax on the same income. We calculate the maximum credit.
Which treaty rate applies on interest and dividends?
It varies by country and by the nature of income. Rates for interest and dividends in Indian treaties often range between 10% and 25%, while the domestic rate for an NRI is higher. We look up the article for your country.
Do I need Form 67 if no tax is due in India?
Foreign tax credit is claimed only against Indian tax, so if the Indian tax on that income is nil, there is nothing to credit. Form 67 is needed only to claim the credit. We check whether a claim is worth making.
What if two countries both treat me as a resident?
The tie-breaker article in the treaty looks at a permanent home, centre of vital interests, habitual abode and nationality in that order. We apply it to your facts and document the conclusion for both tax returns.
How is residential status decided for an NRI?
You are a resident if you stay in India for 182 days or more in the financial year, or for 60 days or more in the year plus 365 days or more in the preceding four years. The 60-day test is relaxed to 182 days for Indian citizens who leave India for employment and, in some cases, to 120 days. We compute your status from passport stamps.
Is NRE account interest taxable in India?
Interest on an NRE account is exempt for a person who is a non-resident under FEMA, and it is generally not taxed in India while you remain a non-resident for income tax. NRO account interest is taxable in India, and banks deduct TDS at 30% plus surcharge and cess unless a lower rate applies under a treaty.
Can I claim relief if the same income is taxed abroad and in India?
Yes. Relief comes through the tax treaty (DTAA) between India and your country of residence, or under section 91 where no treaty exists. You need a Tax Residency Certificate, Form 10F and, for foreign tax credit in India, Form 67. We prepare these with your return and map which country gets the primary right to tax.
