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MoF: Submission highlighting challenges faced by non-resident taxpayers in mandatory e-filing of Form 10F
MoF: Submission highlighting challenges faced by non-resident taxpayers in mandatory e-filing of Form 10F

August 17, 2023

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As you are aware, non-resident taxpayers are mandatorily required to file form 10F online along with Tax Residency Certificate (TRC) to claim benefit of Double Taxation Avoidance Agreement (DTAA) in respect of income earned in India.

Based on feedback from the industry, we have made a submission to Ministry of Finance highlighting practical challenges being faced by non-resident taxpayers, whether or not having Permanent Account Number (PAN), in e-filing Form 10F:

  • NR taxpayers who do not have PAN in India cannot access the e-filing portal of tax department to e-file Form 10F. This is due to the reason that e-filing facility is available only for those taxpayers who have PAN in India. NR taxpayers who wish to claim the benefits of DTAA need to login to the e-filing portal of tax department and hence, are mandatorily required to obtain a PAN in India. Further, the authorised signatory of NR taxpayer is also required to obtain a Digital Signature Certificate (DSC) for signing form 10F electronically. Mandating a non-resident taxpayer to obtain PAN and DSC in India leads to additional compliance burden.
  • Tax authorities in India already have access to information contained in Form 10F as part of reporting done in quarterly TDS statements in Form 27Q. Hence, mandatory e-filing of Form 10F by NR taxpayers will result in duplication and will increase compliance burden for them.

We have requested the government to do away with mandatory electronic filing of Form 10F for NR taxpayers who do not have PAN in India or are not required to obtain PAN under IT Act. Alternatively, government should allow filing of form 10F electronically without creating a PAN-based login ID on the e-filing portal of tax department and permitting e-verification of the same using OTP instead of DSC. This will help in promoting ease of doing business for such non-resident taxpayers.

Please write to tejasvi@nasscom.in in case you need any clarifications. 


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Tejasvi

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