If a person is an NRI and he is earning profit by investing in two countries and there is a double tax agreement between the two countries, then he can get a TRC (Tax Residency Certificate) and pay tax in only one country.
Many NRIs of India live in different countries of the world, these people are settled in different countries of the world who have settled in far-flung countries to earn money, but they still have citizenship of India. It is often seen that NRIs earn money by living abroad and invest in property and other places in India with the help of their family and relatives.
These NRIs also have to pay income tax like other citizens of India, but this income tax has to be paid only on the income that they have earned inside India like they earn through bank deposits, rent or property purchase and sale. Here we are going to tell these NRIs the way to save income tax.
Getting a tax residency certificate
If a person is an NRI and he is earning profit by investing in two countries and there is a double tax agreement between the two countries, then he can deposit tax in only one country by getting a TRC (Tax Residency Certificate). Due to this, he does not have to pay double tax and he also saves money.
Benefits of filling Form 10F
Form 10F is a statement that verifies the eligibility of an individual or entity to receive tax benefits following the Double Taxation Avoidance Agreement (DTAA). This form is mandatory to be submitted before making any payment to an NRI, and its validity is limited to the financial year in which it is submitted. Form 10F consists of two sections. The initial section contains the statement made by the NRI, while the subsequent section includes the certification by the tax authority in the resident country.
Simplifying the e-verification process
In today’s time, income tax can be filed online, but e-verification requires Indian mobile numbers or bank accounts. At the same time, NRIs are demanding to include foreign mobile numbers or email-based verification. Also, there is a demand to extend the 30-day time limit for physical verification, so that those facing logistical delays can be facilitated.
