The Central Board of Direct Taxes (CBDT)
has offered one-time relief to non-resident Individuals (NRIs) not having PAN
by allowing them to file Form 10F manually till
March 31, 2023.
Form 10F is filed by those NRIs receiving payments from India
who do not have PAN and required NRI’s Tax Residency Certificate details. This
form helps them to avoid TDS on the payments accrued or received in India. Do
note that every rupee earned by an NRI in India is subject to TDS provisions
under the Income-tax Act, 1961.
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.
Under the DTAA, an NRI taxpayer having Tax Residency
Certificate must have the following details - i) Name, ii) Address of the NRI
taxpayer, iii) Tax Identification Number of a foreign country, iv) Status of
the taxpayer (individual, firm etc.) and so on.
Under the current income tax rules, an NRI taxpayer can file
this Form 10F to avoid TDS on payments received in India as well as take
advantage of DTAA as well. Under the DTAA rules, an eligible NRI taxpayer would
not have to pay tax on the income received from India.
With this relaxation, the eligible NRI taxpayer can ask her
chartered accountant to file this form on their behalf manually on or before
March 31, 2023, and take benefit under the DTAA rules, he adds.
What
the latest CBDT notification states
As per the notification issued by the CBDT, “On consideration of the practical
challenge being faced by non-resident (NR) taxpayers not having PAN in making
compliance as per the above notification and with a view to mitigate genuine
hardship to such taxpayers, it has been decided by the Competent Authority that
such category of Non-resident taxpayers who are not having PAN and are not
required to have PAN as per relevant provisions of the Income-tax Act, 1961
read with Income-tax rules, 1962 are exempted from mandatory electronic filing
of Form 10F till March 31, 2023. For sake of clarity, it is reiterated that
such category of taxpayers may make statutory compliance of filing Form 10F
till March 31, 2023, in manual form as was being done prior to issuance of the
DGIT (Systems) Notifications no.3 of 2022.”
Related Tags Incometax
0 Comments:
Post a Comment