NRIs without PAN - Don't Miss Out on TDS Exemption - File Form 10F by March 31st

Are you and NRI without PAN? Do you wish to save taxes under DTAA? If yes, read the article to know more.

NRIs without PAN

The CBDT released a notification (dated December 12, 2022) offering a one-time relief to NRIs without PAN and the necessary information in their Tax Residency Certificate. To take advantage of this relief, these taxpayers must file Form 10F, in order to claim benefits under the Double Taxation Avoidance Agreements (DTAA). It's important to note that this form must be filed before the deadline of March 31, 2023. This article will explore the various aspects of the notification in more detail.

Latest Income Tax News (Partial relief through CBDT notification)

NRI taxpayers without a Permanent Account Number (PAN) have been given a one-time relief or partial relief by the Central Board of Direct Taxes (CBDT) to file Form (10F) manually until 31 March 2023. This will provide them with a lower Tax Deducted at Source (TDS) rate and reduce their compliance burden i.e lesser TDS payments and maybe a lower income tax slab. It is worth mentioning here that provisions of TDS under the IT Act, 1961, apply to every NRI who earns in India.

Abhishek Soni, CEO of, an ITR filing website, states that according to the CBDT notification, NRI taxpayers who want to get the benefits under DTAA provisions can manually file Form (10F) latest by March 31, 2023, if they do not have PAN and they are not required to apply for PAN as per the latest Income-tax news.

NRI taxpayers are required to file Form (10F) if they do not have a Tax Residency Certificate or PAN, as mandated by the Double Taxation Avoidance Agreement. Keep in mind that TDS will be deducted at a higher rate if an individual does not have a PAN.

According to the DTAA, an NRI taxpayer who possesses a Tax Residency Certificate must provide certain information, including their name, Tax Identification Number of the foreign country, address, and their status as an individual or a firm, among other things.

The current income tax regulations allow NRI taxpayers to submit Form 10F in order to prevent TDS on payments received in India and take advantage of the DTAA. As per the DTAA regulations, a qualified NRI taxpayer would not be subject to tax on income received from India.

The eligible NRI taxpayers can ask their Chartered Accountant(s) to this form (10F) on their behalf manually latest by March 31, 2023, and enjoy the benefits under the DTAA rules.

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Dr Suresh Surana, the Founder of RSM India, a tax consultancy, has stated that, according to Section 90(5), Form 10F is generally required by non-residents to take advantage of any tax treaty with regard to any income earned in India. He mentioned that, based on a notification issued on 16th July 2022, not filing Form 10F electronically may lead to the withdrawal of beneficial Treaty rates by the income tax authorities and could possibly result in tax and penal consequences on the Indian resident deductor/remitter for the shortfall or nil deduction of tax, according to the actual situation, by treating them as "assessee in default". He further noted that, post the notification issued in July 2022, the major challenge for non-residents lies in obtaining a PAN registration to be able to file Form 10F online, creating a practical difficulty for them in complying with the requirement of documentation in regards to remittances from India.

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The CBDT's notification offering one-time relief to NRIs without PAN is a welcome move and will reduce the compliance burden for them. This form (10F) must be filed latest by March 31, 2023, in order to claim benefits from the Double Taxation Avoidance Agreements (DTAA). TDS will be deducted at a higher rate in case the form is not filed. It is important to note that obtaining PAN registration is essential for filing Form 10F online in order to prevent any tax or penal consequences or help reduce the income tax slab.


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