Form 10F and Tax Residency Certificate in India for Non Residents (2026)

Written by CA Nandini, Krystal7 Consultants. Last updated 2 October 2026.

Form 10F is now Form 41. From 1 Apr 2026, section 159(8) of the Income Tax Act, 2025 lets a non resident claim treaty relief only with two things. The first is a tax residency certificate (TRC) from its home government. The second is Form 41, filed online on the income tax portal under rule 75(1) of the Income Tax Rules, 2026. File Form 41 once per tax year, before the first payment. PAN is optional for it.

This page explains who files Form 41 and how to file it with or without PAN. It also covers how long a TRC lasts and what the Indian payer must check. It also covers how an Indian company gets its own TRC through Forms 42 and 43.

What is Form 10F and what is it called under the Income Tax Act, 2025?

Form 10F was the self declaration a non resident gave to claim relief under a Double Taxation Avoidance Agreement (DTAA). From 1 Apr 2026 it is Form 41 under the Income Tax Rules, 2026. The legal basis moved from section 90(5) of the Income Tax Act, 1961 to section 159(8) of the Income Tax Act, 2025.

The Income Tax Act, 2025 came into force on 1 Apr 2026. The Income Tax Rules, 2026 were notified as G.S.R. 198(E) of 20 Mar 2026. The department renumbered every form. Its official form map lists Form 41 as "Information to be provided" under section 159(8), replacing Form 10F.

Section 159(8) reads in two parts. A non resident "shall be entitled to claim any relief under an agreement ... only when" both clauses are met:

1. Clause (a): it obtains a certificate of being a resident from the government of its country or specified territory. This is the TRC.
2. Clause (b): it provides "such other documents and information, as may be prescribed". Rule 75(1) prescribes Form 41.

Rule 75 has four parts, numbered (1) to (4). Each replaces a part of old rule 21AB. Old rule 21AB(2) has no successor.

Rule 75 of the Income Tax Rules, 2026	What it says	Old rule under the 1962 Rules
75(1)	A non resident claiming relief under section 159(1) or (2) gives the section 159(8)(b) information in Form 41	21AB(1), Form 10F
75(2)	The non resident keeps documents to support Form 41; a tax authority may call for them	21AB(2A)
75(3)	A resident applies for a certificate of residence in Form 42 to the Assessing Officer	21AB(3), Form 10FA
75(4)	The Assessing Officer issues the certificate in Form 43	21AB(4), Form 10FB

The old Form 10F still has a life. The transition FAQ (Q4.39) says the portal supports old forms for AY 2026-27 and earlier. New forms apply from tax year 2026-27. So a Form 10F already filed for FY 2025-26 stays on record for that year. Every payment from 1 Apr 2026 needs Form 41 for tax year 2026-27.

For the wider set of renumbered forms, see our guide to Income Tax Act, 2025 changes for foreign owned companies.

What information does Form 41 ask for?

Form 41 asks for the non resident's identity, its residence details and a copy of the TRC. It has three panels on the portal: Part A (particulars of the applicant), Part B (residential information) and the declaration with verification. The fields come from the notified form and the portal user manual.

Part of Form 41	Field	What to enter
Part A	Name	Full legal name as on the TRC
Part A	Address	Address in the country of residence
Part A	Address for communication in India	Optional where none exists; we give the Indian payer's address only if the client agrees
Part A	PAN	Only if the non resident has one
Part A	Email and contact number	With country code
Part B	Tax year	The Indian tax year of the claim, for example 2026-27
Part B	Status	Individual, company, firm, LLP or other
Part B	Country of residence or incorporation	Nationality for an individual; country of incorporation for others
Part B	Tax Identification Number (TIN)	The home country number, or a unique identification number used there
Part B	Period of residential status	The period stated on the TRC
Part B	Address outside India during that period	Must match the TRC
Part B	Copy of the section 159(8) certificate	Upload the TRC as an annexure
Declaration	Confirmation	The applicant has obtained the TRC and attached it
Verification	Signatory	Name, designation and PAN (if any) of the person signing

The fields mirror the five items in old rule 21AB(1): status, nationality or country of incorporation, TIN, period of residence and overseas address. The change is in the exemption. Old rule 21AB(2) excused a non resident from giving any item already contained in the TRC. Rule 75 has no such exemption. Form 41 is now needed even when the TRC shows every field.

Who must file Form 41?

Every non resident that wants a DTAA rate or exemption on Indian income must file Form 41. That covers individuals, companies, firms, LLPs and other entities. It applies whether the non resident files an Indian return or only suffers tax withheld at source. The CBDT guidance note says Form 41 must be furnished whenever treaty benefits are claimed.

In practice, three groups file it most often.

1. Foreign parent companies receiving dividends, interest, royalties or service fees from an Indian subsidiary.
2. Foreign vendors and consultants paid by Indian companies for services, software or licences.
3. Non resident Indians and foreign investors claiming a treaty rate on interest, dividends or capital gains.

Residents do not file Form 41. An Indian company that wants a treaty benefit abroad needs its own Indian TRC instead, which is Form 43.

Type of Indian income	Who usually pays it	Form 41 needed for a treaty rate?
Dividend from an Indian company	Indian subsidiary	Yes
Interest on a loan or ECB	Indian borrower	Yes
Royalty or fees for technical services	Indian licensee or client	Yes
Business income with no permanent establishment in India	Indian client	Yes, to support the "not taxable" position
Capital gains on sale of Indian shares	Indian buyer, or self assessed	Yes, where a treaty exemption or lower rate is claimed
Salary for work done in India	Indian employer	Yes, for a short stay exemption under the treaty

Our guide to TDS on payments to non residents sets out the domestic rates that apply when no treaty claim is made.

Is a TRC alone enough to claim treaty rates?

No. Section 159(8) needs both the TRC and the prescribed information in Form 41. A TRC without Form 41 fails clause (b).

A TRC with Form 41 is also not a guarantee. In Tiger Global (2026 INSC 60, 15 Jan 2026) the Supreme Court allowed the revenue's appeals and set aside the Delhi High Court judgment. Section 159(6) applies the General Anti Avoidance Rule (GAAR) to treaty claims. The tax officer can also test beneficial ownership and the principal purpose test.

The statutory position

The two clauses in section 159(8) are joined by "and". The CBDT guidance note on Form 41 says that without a valid Form 41, "the DTAA benefit is not available". The payer then deducts tax at the full domestic rate.

The Tiger Global ruling of 15 Jan 2026

A Finance Ministry press release of 1 Mar 2013 said a TRC "will be accepted as evidence" of residence in the other country. Many advisers read that as making the TRC final.

The case is The Authority for Advance Rulings (Income Tax) v. Tiger Global International II Holdings, Civil Appeals 262 to 264 of 2026. In Tiger Global (2026 INSC 60, 15 Jan 2026) the Supreme Court allowed the revenue's appeals and set aside the Delhi High Court judgment. The High Court had ruled for the taxpayer on 28 Aug 2024. The dispute was about capital gains that Mauritius companies claimed as exempt under the India Mauritius treaty.

The judgment records the revenue's argument that a TRC is not conclusive and that GAAR can override a treaty benefit. Commentators read the ruling as limiting reliance on a TRC alone. We suggest reading the judgment itself before relying on any single line from it.

The statute points the same way. Section 159(6) of the 2025 Act says Chapter XI applies "even if such provisions are not beneficial" to the assessee. Chapter XI holds GAAR.

What the payer and the payee should hold

The TRC proves residence. It does not prove beneficial ownership, the absence of a permanent establishment or a commercial purpose. CBDT Circular 1/2025 of 21 Jan 2025 gives guidance on the principal purpose test in India's treaties. We ask a foreign payee for these documents with every treaty claim.

Document	What it proves	Required by
TRC	Residence in the treaty country for the stated period	Section 159(8)(a)
Form 41 acknowledgement	The prescribed information was filed online	Section 159(8)(b), rule 75(1)
Supporting records for Form 41	Status, TIN and address shown in Form 41	Rule 75(2)
Beneficial ownership declaration	The payee keeps the income and is not a conduit	Dividend, interest and royalty articles of most treaties
No permanent establishment declaration	The income is not connected with a fixed place or agent in India	Business profits article
Evidence of substance	Office, staff and decision making in the home country	Principal purpose test and GAAR
PAN, or rule 217 details	Avoids the higher rate under section 397(2)	Section 397(2), rule 217

How do you file Form 41 online?

Form 41 is filed only online, on the income tax portal (incometax.gov.in). The non resident logs in, selects Form 41, chooses the tax year, completes three panels, uploads the TRC and verifies. The portal shows a Transaction ID and an Acknowledgement Receipt Number, and sends a confirmation to the registered email. The CBDT FAQ confirms there is no offline route.

The steps follow the Form 41 user manual on the portal.

1. Log in with the PAN based user ID. A non resident without PAN uses its separate NR ID login.
2. Go to e-File then Income Tax Forms, then File Income Tax Forms.
3. Search for Form 41 and click File Now.
4. Select the tax year, for example 2026-27, and click Continue.
5. Confirm the profile details in Part A.
6. Fill Part B with status, country, TIN, residence period and overseas address.
7. Upload the TRC as the annexure.
8. Complete the declaration and verification panel.
9. Click Preview, then Proceed to E-Verify.
10. Verify by EVC or a registered DSC with a PAN login, or by OTPs to email and mobile with an NR ID login.
11. Save the acknowledgement and send a copy to every Indian payer.

Login type	Who uses it	How Form 41 is verified
PAN login	Non resident holding a PAN	Electronic Verification Code or Digital Signature Certificate
NR ID login	Non resident without PAN and not required to have one	One time passwords sent to the registered email and mobile

Once submitted, Form 41 cannot be edited. The FAQ says so in terms. If a field is wrong, we file a fresh Form 41 for the same tax year with the correct data and keep both acknowledgements.

Can a non resident without PAN file Form 41?

Yes. The CBDT guidance note says PAN is optional for Form 41. A non resident that has no PAN and is not required to have one files through the NR ID login and verifies by OTP. Before July 2022 such filers gave a paper Form 10F. The paper route ended on 30 Sep 2023.

How the paper route ended

Date	Instrument	Effect
16 Jul 2022	DGIT (Systems) Notification No. 3 of 2022	Form 10F made electronic on the portal
12 Dec 2022	DGIT (Systems) notification of that date	Non residents without PAN, and not required to have it, could file Form 10F manually until 31 Mar 2023
28 Mar 2023	F. No. DGIT(S)-ADG(S)-3/e-Filing Notification/Forms/2023/13420	Manual filing extended to 30 Sep 2023
1 Oct 2023 onwards	No further extension found	Electronic filing for all, including filers without PAN
1 Apr 2026	Income Tax Rules, 2026, rule 75(1)	Form 41 replaces Form 10F; online only

PAN and the higher withholding rate

Form 41 without PAN is one thing. Tax withholding without PAN is another. Section 397(2)(a) of the 2025 Act requires every person receiving an amount subject to TDS to give a valid PAN to the deductor. If it does not, section 397(2)(b)(i) sets the highest of three rates. These are the rate in the relevant provision, the rate in force, and 20 percent. A lower 5 percent floor applies to two entries in the section 393(1) table, serial numbers 8(ii) and 8(v).

Section 397(2)(c) relaxes this for a non resident (not being a company) and a foreign company in two cases. The first is interest on the long term bonds in section 393(2), table serial numbers 2, 3 and 4. The second is any other payment that meets prescribed conditions. Rule 217 sets those conditions. It covers interest, royalty, fees for technical services, dividends and payments on transfer of a capital asset. The deductee must give the deductor:

1. Name, email address and contact number.
2. Address in the country or specified territory of residence.
3. A certificate of residence from that government, if the law there provides one.
4. The Tax Identification Number in that country, or a unique identification number used there.

So a non resident without PAN can avoid the 20 percent floor on these payments. It does that by giving the rule 217 details. It still needs Form 41 to get the treaty rate itself.

Situation	Withholding outcome
PAN given, TRC and Form 41 given	Treaty rate, if lower than the Act rate
No PAN, rule 217 details given, TRC and Form 41 given	Treaty rate, for the payment types rule 217 covers
No PAN, rule 217 details given, no Form 41	Act rate under the 2025 Act; no treaty rate
No PAN, no rule 217 details	Highest of the Act rate, the rate in force, or 20 percent
No PAN, payment type outside rule 217 (for example business income)	Highest of the Act rate, the rate in force, or 20 percent

A Form 131 TDS certificate goes only to a payee reported with a valid PAN. A payee without PAN cannot see the tax in its annual information statement. That is a practical reason for a regular Indian earner to take a PAN anyway.

How long is a TRC and Form 41 valid?

Form 41 is filed once per tax year, and the CBDT FAQ says so. The TRC must be valid for the relevant Indian financial year. An Indian tax year runs from 1 April to 31 March. Many countries certify residence by calendar year. One Indian tax year can therefore need two foreign TRCs.

The Act and rule 75 set no fixed validity for a foreign TRC. The TRC's own period governs. Form 41 asks for "the period for which the residential status" applies, as stated on the TRC.

Home country	Who issues the TRC	Period it usually covers	What it means for the Indian tax year
United States	IRS, on Form 8802 (certificate on Form 6166)	The period requested on Form 8802	A calendar 2026 certificate covers only 1 Apr 2026 to 31 Dec 2026 of tax year 2026-27
United Kingdom	HMRC certificate of residence	The period stated on the certificate	Check the dates against 1 Apr to 31 Mar
Singapore	IRAS Certificate of Residence	The period stated on the certificate	Two certificates may be needed if it follows the calendar year
United Arab Emirates	Federal Tax Authority	The period stated on the certificate	Check the dates against 1 Apr to 31 Mar

The IRS raised the Form 8802 user fee from 1 Oct 2026, as its Form 6166 page states. It went from USD 85 to USD 105 for individuals and from USD 185 to USD 230 for business applicants. A US parent should budget for the new fee on any request made now.

We use one simple test. On the date the Indian payer credits or pays the amount, is the payee covered by a TRC period? If not, the payer withholds at the Act rate until a covering TRC arrives.

When must Form 41 be filed?

The CBDT FAQ says there is no fixed time limit for Form 41. It is filed when the treaty benefit is claimed. The practical deadline is earlier. The payer must hold the Form 41 acknowledgement before it credits or pays the amount, because that is when tax is deducted.

Event	Timing	Law
Payee obtains TRC	Before the payment date, covering it	Section 159(8)(a)
Payee files Form 41	Once per tax year, before the first treaty rate payment	Section 159(8)(b), rule 75(1)
Accountant issues Form 146	Before the remittance, where Part C of Form 145 applies	Rule 220
Payer files Form 145	Before the remittance	Section 397(3)(d)
Payer deposits TDS	By the 7th of the next month; 30 April for March	Rule 218(2)
Payer files Form 144	Quarterly; 31 Oct for July to September	Section 397(3)(b), rule 219
Payer issues Form 131	Within 15 days of the Form 144 due date	Rule 215(1)
Payee files Indian return, if required	Return due date under section 263	Section 263(1)(c)

Form 146 (old Form 15CB) asks the chartered accountant to report the TRC and Form 41 when DTAA relief is claimed. The CBDT guidance note on Form 146 lists the TRC as "Required for claiming DTAA benefits". Our guide to Forms 15CA and 15CB, now Forms 145 and 146 covers which part applies.

Does a non resident filing Form 41 also need to file an Indian return?

Not always. Section 207(8) of the 2025 Act exempts some non residents from filing a return under section 263(1). Two conditions apply.

First, the total income must consist only of income that section 207 lists. That means section 207(1), table serial numbers 1 to 7, and section 207(2), serial numbers 1 and 2. Second, tax must have been deducted at a rate not less than the section 207 rate. A treaty rate below that rate fails the second condition. So a payee claiming a lower treaty rate usually files an Indian return.

The CBDT guidance note says Form 41 is needed to process a treaty claim made in a return. We see foreign parents miss this step most often. They assume the lower withholding ended the matter. The return also lets the payee claim a refund if the payer withheld more than the treaty rate. Our income tax return service handles returns for foreign companies.

How does an Indian company get its own tax residency certificate?

An Indian resident applies on the income tax portal in Form 42 (old Form 10FA) under rule 75(3). The Assessing Officer issues the certificate in Form 43 (old Form 10FB) under rule 75(4). The applicant logs in with its PAN. There is no due date for Form 42, and no statutory time limit for issuing Form 43.

An Indian company needs its TRC when it earns income abroad and the foreign payer wants treaty relief. A software exporter billing a US or UK client is a common case. A foreign customer usually asks for the TRC before it cuts withholding.

Point	Form 42 (application)	Form 43 (certificate)
Old form	Form 10FA	Form 10FB
Rule	Rule 75(3)	Rule 75(4)
Section	Section 159(1) and (2)	Section 159(1) and (2)
Who	Any resident claiming Indian tax residency	Assessing Officer
How	Online, PAN based login	Issued to the applicant after the officer is satisfied
Verification	EVC, Aadhaar OTP or DSC	Not applicable
Documents	PAN, Aadhaar, TAN or passport; incorporation documents for entities; documents supporting other details	As the Assessing Officer requires
Due date	None	No statutory limit
Number	One per period	No limit, if periods within a tax year do not overlap

Three practical points help.

1. Apply for the exact period the foreign payer needs. Some foreign forms ask for a calendar year. Form 43 can cover a stated period, and several certificates are possible within a tax year.
2. Upload the latest return acknowledgement and the incorporation certificate with Form 42. Officers usually ask for both.
3. Check whether the foreign country wants its own form signed by the Indian authority. Some treaty partners do. Form 43 does not replace that form.

Indian parents with overseas subsidiaries face this when the subsidiary pays a dividend or service fee back to India.

What happens if Form 41 is not filed?

Without Form 41, the treaty benefit is not available. The CBDT guidance note says the payer deducts tax at the full domestic rate. The payee loses the gap between the treaty rate and the Act rate on that payment. It can recover the excess only by filing an Indian return with Form 41 and a TRC.

The larger risk falls on the Indian payer that applies the treaty rate without Form 41. The tax officer can treat the shortfall as tax not deducted.

Consequence	Who bears it	Law
Treaty rate refused; Act rate applies	Payee	Section 159(8)
Higher rate where PAN and rule 217 details are missing	Payee	Section 397(2)
Payer treated as assessee in default for the shortfall	Payer	Section 398(1)
Interest at 1 percent for every month or part of a month for late or short deduction; 1.5 percent for late deposit	Payer	Section 398(3)(a)
Penalty equal to the tax not deducted, which the Assessing Officer may impose	Payer	Section 448
Expense disallowed where tax is not deducted, or is deducted but not paid	Payer	Section 35(b)(ii)
Prosecution for TDS default, graded by amount	Payer	Section 476
Corrected Form 144 and Form 131	Payer	Section 397(3)(b), section 395(4)

The revenue's win in Tiger Global raises the stakes for capital gains claims. A buyer of Indian shares from a foreign seller should not rely on the TRC and Form 41 alone. It should ask for a lower deduction certificate where the amount is large. Our guide to the lower TDS certificate in Form 128 explains the route under section 395(1).

What does an Indian payer check before applying a treaty rate?

The payer checks that the TRC covers the payment date and that Form 41 was filed for the same tax year. It then checks the treaty article, the rate and any holding or beneficial ownership condition. The chartered accountant records these checks in Form 146.

We run this file check before every first remittance in a tax year.

1. Is the payee's name on the TRC the same as on the invoice and the Form 41?
2. Does the TRC period cover the date of credit or payment?
3. Is the Form 41 acknowledgement for the right tax year?
4. Does the TIN on Form 41 match the TRC?
5. Which treaty article applies, and what rate does it allow?
6. Does the payee meet any shareholding threshold the article sets?
7. Is the beneficial ownership declaration signed and dated?
8. Is there any sign of a permanent establishment in India?
9. Does the payee have a PAN, or has it given all four rule 217 details?

For a dividend to a foreign parent, the article and the holding test matter most. Our guide on dividends from an Indian subsidiary to a foreign parent gives treaty rates for ten parent countries. For a Singapore parent, the India Singapore DTAA guide covers that treaty for companies.

What changed in 2026

Three things changed. The Supreme Court decided Tiger Global on 15 Jan 2026. The law on treaty documents moved to the Income Tax Act, 2025 on 1 Apr 2026. The IRS fee for a US TRC rose on 1 Oct 2026.

Item	Old position	New position	Date	Instrument
Section for treaty relief	Sections 90 and 90A, Income Tax Act, 1961	Section 159, Income Tax Act, 2025	1 Apr 2026	Income Tax Act, 2025 (Act 30 of 2025)
TRC and information requirement	Section 90(4) and (5); 90A(4) and (5)	Section 159(8)(a) and (b)	1 Apr 2026	Income Tax Act, 2025
Information form	Form 10F, rule 21AB(1)	Form 41, rule 75(1)	1 Apr 2026	Income Tax Rules, 2026, G.S.R. 198(E) of 20 Mar 2026
Exemption for details already on the TRC	Rule 21AB(2) excused them	No exemption in rule 75	1 Apr 2026	Income Tax Rules, 2026
Indian TRC application	Form 10FA	Form 42, rule 75(3)	1 Apr 2026	Income Tax Rules, 2026
Indian TRC certificate	Form 10FB	Form 43, rule 75(4)	1 Apr 2026	Income Tax Rules, 2026
Period label	Previous year and assessment year	Tax year	1 Apr 2026	Section 3, Income Tax Act, 2025
Higher rate without PAN	Section 206AA	Section 397(2)	1 Apr 2026	Income Tax Act, 2025
Details in place of PAN	Rule 37BC	Rule 217	1 Apr 2026	Income Tax Rules, 2026
Remittance forms	Forms 15CA and 15CB	Forms 145 and 146	1 Apr 2026	Income Tax Rules, 2026; transition FAQ Q4.25
Quarterly TDS statement for non residents	Form 27Q	Form 144	1 Apr 2026	Income Tax Rules, 2026
Weight of a TRC	Delhi High Court judgment of 28 Aug 2024 favoured the taxpayer	Supreme Court allowed the revenue's appeals and set that judgment aside; commentators read it as limiting reliance on a TRC alone	15 Jan 2026	Supreme Court, 2026 INSC 60
US Form 8802 user fee	USD 85 individual; USD 185 business	USD 105 individual; USD 230 business	1 Oct 2026	IRS Form 6166 page

Section 536 of the 2025 Act keeps circulars and actions under the 1961 Act alive where they are consistent with the new law. The 2013 press release was a statement, not a circular. Read it now with section 159(6) and the Tiger Global outcome.

Worked example

Both scenarios use tax year 2026-27 and amounts below INR 1 crore, so no surcharge applies to the Act rate. Health and education cess is 4 percent on the Act rate. Applying a treaty rate without surcharge and cess follows tribunal rulings, not the text of the Act. We present it as current practice.

Scenario 1, a dividend to a US parent

Acme Inc, a Delaware company, owns 100 percent of Acme India Private Limited. The Indian company declares a final dividend of INR 80,00,000 on 25 Sep 2026. The India US treaty allows 15 percent where the parent holds at least 10 percent of the voting stock.

Line	Without Form 41 (INR)	With TRC and Form 41 (INR)
Gross dividend	80,00,000	80,00,000
Base rate	20% (section 207)	15% (Article 10(2), India US DTAA)
Base tax	16,00,000	12,00,000
Cess at 4%	64,000	Nil (practice)
Total tax withheld	16,64,000	12,00,000
Net dividend remitted	63,36,000	68,00,000
Effective rate	20.8%	15%

The documents save the parent INR 4,64,000 (16,64,000 less 12,00,000). Acme Inc's Form 6166 for calendar 2026 covers 25 Sep 2026. A second dividend in February 2027 would need a 2027 certificate.

Now suppose the Indian company applied 15 percent without a Form 41 on file. The officer finds the gap five months later. The shortfall is INR 4,64,000. Interest at 1 percent a month under section 398(3)(a) for five months is INR 23,200 (4,64,000 x 1% x 5). Section 448 also allows a penalty equal to the shortfall, INR 4,64,000. The Indian company bears both, not the parent.

Scenario 2, interest to a Singapore parent on a rupee loan

A Singapore parent lends INR 4 crore in rupees to its Indian subsidiary at 10 percent a year. Interest for tax year 2026-27 is INR 40,00,000. Rupee interest to a foreign company has no special rate in section 207. It falls under "any other income" at 35 percent plus cess. The India Singapore treaty caps interest at 15 percent for a non bank lender.

Line	Without Form 41 (INR)	With TRC and Form 41 (INR)
Interest credited	40,00,000	40,00,000
Base rate	35%	15% (Article 11, India Singapore DTAA)
Base tax	14,00,000	6,00,000
Cess at 4%	56,000	Nil (practice)
Total tax withheld	14,56,000	6,00,000
Net interest paid	25,44,000	34,00,000

The treaty claim saves INR 8,56,000 (14,56,000 less 6,00,000). Assume the parent's IRAS certificate covers calendar 2026. It then covers credits from April to December 2026. The March 2027 credit needs a 2027 certificate. Without it, the March quarter's interest of INR 10,00,000 attracts tax of INR 3,64,000 at 36.4 percent. The treaty rate would give INR 1,50,000.

Common mistakes

1. Relying on the TRC alone. Rule 75 has no exemption for details already on the TRC. Fix: file Form 41 every tax year, even when the TRC shows the TIN and address.
2. Filing Form 41 after the payment. The payer deducts on credit or payment, whichever is earlier. Fix: file Form 41 before the first credit in the tax year and send the acknowledgement to the payer.
3. Using a calendar year TRC for the whole Indian tax year. A 2026 certificate stops on 31 Dec 2026. Fix: diarise a fresh TRC request for January and hold January to March payments until it arrives.
4. Picking the wrong tax year on the portal. A Form 41 for 2025-26 does not support a payment in 2026-27. Fix: select the tax year of the payment, and file a new form if the year is wrong.
5. Trying to edit a filed Form 41. The portal does not allow edits. Fix: file a fresh Form 41 with the correct data and keep both acknowledgements.
6. Ignoring PAN and rule 217. A treaty claim does not stop the 20 percent floor in section 397(2). Fix: get a PAN or all four rule 217 details before the payment.
7. Assuming no Indian return is needed. The section 207(8) exemption needs tax deducted at not less than the section 207 rate. Fix: plan an Indian return when a treaty rate applies, and attach Form 41.
8. Treating the TRC as proof of beneficial ownership. A TRC certifies residence only. The revenue won Tiger Global in the Supreme Court on 15 Jan 2026. Fix: keep beneficial ownership, no PE and substance evidence on file.
9. Name mismatches across documents. The invoice, TRC and Form 41 show different entity names. Fix: align names before the accountant signs Form 146.
10. Indian exporters waiting for the foreign client to chase. Foreign payers often withhold at full rate until they get the Indian TRC. Fix: file Form 42 at the start of the year for the period the client needs.

Krystal7 prepares the treaty file for foreign parents and Indian payers through our FEMA and cross border compliance service.

Checklist for a treaty claim by a non resident

1. Identify each type of Indian income and the treaty article that covers it.
2. Request a TRC from the home tax authority that covers every expected payment date.
3. Decide whether the non resident will take a PAN or rely on the rule 217 details.
4. Register on the income tax portal with the PAN login or the NR ID login.
5. File Form 41 for the correct tax year, upload the TRC and verify it.
6. Send the Form 41 acknowledgement, the TRC and the TIN to every Indian payer.
7. Sign beneficial ownership and no permanent establishment declarations for each payment.
8. Ask the Indian payer's chartered accountant to issue Form 146 where Part C of Form 145 applies.
9. Confirm that the payer filed Form 145 before the remittance.
10. Collect Form 131 from the payer after each quarter, where a PAN was reported.
11. File the Indian return with Form 41 details where the treaty rate took the payee outside section 207(8).
12. Renew the TRC and file a fresh Form 41 before the next tax year starts on 1 April.

Frequently Asked Questions

Is Form 10F still valid after 1 Apr 2026?+

Form 10F applies only up to FY 2025-26 (AY 2026-27). The transition FAQ Q4.39 says the portal supports old forms for AY 2026-27 and earlier. For any payment from 1 Apr 2026, the non resident files Form 41 for tax year 2026-27 under rule 75(1) of the Income Tax Rules, 2026.

Is Form 41 the same as Form 10F?+

Form 41 replaces Form 10F and asks for the same core details: status, country, TIN, residence period and overseas address. The difference is that rule 75 dropped the old rule 21AB(2) exemption. Form 41 is now needed even when the TRC already shows those details.

Do I need to file Form 41 for every payment?+

No. The CBDT FAQ says Form 41 is filed once per tax year. One acknowledgement can support every payment from every Indian payer in that tax year. A fresh Form 41 is needed for each new tax year starting 1 April.

Can Form 41 be filed on paper or emailed to the Indian payer?+

No. The CBDT FAQ says Form 41 can only be submitted online on the income tax portal. The paper route for Form 10F filers without PAN ended on 30 Sep 2023 under the DGIT (Systems) notification of 28 Mar 2023. Send the payer the portal acknowledgement.

What is the NR ID login for Form 41?+

It is a separate portal login for non residents that hold no PAN and are not required to have one. The Form 41 user manual says such filers use it and verify by OTPs sent to their email and mobile. Filers with PAN use the normal PAN login and verify by EVC or DSC.

Does Form 41 need a digital signature certificate?+

Not always. With a PAN login, the filer verifies Form 41 by EVC or a DSC registered on the portal. With an NR ID login, OTPs to email and mobile verify it. A foreign company's signatory without an Indian bank account usually uses a DSC or the NR ID route.

Is Aadhaar needed to file Form 41?+

No. The CBDT FAQ on Form 41 says Aadhaar is no longer required. A filer with an NR ID login verifies by OTPs sent to its registered email and mobile. Aadhaar is one verification option for Form 42, the Indian resident's TRC application, not for Form 41.

Which date must the TRC cover?+

The TRC must cover the date the Indian payer credits or pays the income, whichever is earlier, because that is when tax is deducted. The CBDT guidance note says the TRC must be valid for the relevant Indian financial year. A calendar year TRC covers only part of an Indian tax year.

Can the Indian payer apply the treaty rate if Form 41 arrives late?+

The payer should not apply the treaty rate before it holds both the TRC and the Form 41 acknowledgement. If it deducted at the Act rate, the payee can claim the excess as a refund in its Indian return, attaching Form 41. The payer can revise the TDS statement only within the rules for corrections.

Does Form 41 stop the 20 percent rate for not having a PAN?+

No. Section 397(2) is a separate test. A non resident without PAN avoids the higher rate only by giving the four rule 217 details: contact details, overseas address, TRC and TIN. Rule 217 covers interest, royalty, fees for technical services, dividends and capital asset transfers.

Does the foreign company need an Indian PAN to claim treaty benefits?+

Not for Form 41, where PAN is optional. A PAN helps in three ways. It removes the section 397(2) risk for all payment types. It lets the payee receive Form 131 TDS certificates. It also lets the payee file an Indian return and claim refunds.

How does an Indian company get a TRC for a foreign client?+

The Indian company files Form 42 on the income tax portal with its PAN login, under rule 75(3). The Assessing Officer issues the TRC in Form 43 under rule 75(4). There is no filing due date and no statutory issue deadline, so apply well before the foreign payment.

How many Form 43 certificates can an Indian resident hold in a year?+

The CBDT guidance note on Form 43 says there is no limit on the number of TRCs, provided the periods within a tax year do not overlap. A company can take a certificate for April to December and another for January to March to match a foreign client's calendar year.

Does the Tiger Global ruling affect ordinary dividends and service fees?+

In Tiger Global (2026 INSC 60, 15 Jan 2026) the Supreme Court allowed the revenue's appeals and set aside the Delhi High Court judgment. The dispute was about capital gains claimed by Mauritius companies. Commentators read the ruling as limiting reliance on a TRC alone. Section 159(8) and section 159(6) apply to every treaty claim, so keep beneficial ownership and substance evidence for dividends, interest and fees too.

What should a US parent ask the IRS for?+

A US parent files Form 8802 to get Form 6166, the US residency certificate. From 1 Oct 2026 the IRS fee is USD 230 for a business applicant and USD 105 for an individual. Request the period that covers every Indian payment date.

Is Form 41 required for income that a treaty exempts entirely?+

Yes. Section 159(8) applies to "any relief" under a treaty, which includes full exemption, such as business profits without a permanent establishment. The payee needs a TRC and Form 41 before the payer can treat the payment as not taxable in Form 145 or Form 146.

What records must a non resident keep after filing Form 41?+

Rule 75(2) requires the non resident to keep documents that support the information in Form 41. A tax authority can call for them to verify the treaty claim. We keep the TRC, TIN evidence, incorporation documents and proof of the overseas address for each tax year.

Sources

• Income Tax Department, Income Tax Act, 2025, section 159, accessed 2 Oct 2026, https://www.incometaxindia.gov.in/w/section-159-89
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• Income Tax Department, Income Tax Rules, 1962, rule 21AB, accessed 2 Oct 2026, https://www.incometaxindia.gov.in/w/rule-21ab
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