Short answer: if you’re taxed on the same income in India and your country of residence, a Double Taxation Avoidance Agreement (DTAA) usually lets you pay India a reduced treaty rate — often 10–15% instead of the standard 20–30% withholding. To claim it, you need two documents: a Tax Residency Certificate (TRC) from your country of residence and a Form 10F filed electronically on India’s tax portal.

What a DTAA does

India has DTAAs with 90+ countries. Under Section 90 of the Income-tax Act, if a treaty rate is lower than the domestic rate, you can apply the treaty rate. Where there’s no treaty, Section 91 gives unilateral relief. In practice this means:

  • Interest (e.g. NRO deposits): domestic 30% → often 10–15% under treaty (India-USA ~15%, India-UK ~10%).
  • Dividends: domestic 20% → typically 10–15%.
  • Royalties / fees: often 10–15%.

On ₹10 lakh of Indian interest, that’s the difference between ₹3 lakh and ₹1.5 lakh withheld — a straight ₹1.5 lakh saving.

The Tax Residency Certificate (TRC)

A TRC is issued by the tax authority of your country of residence and proves you’re a tax resident there. It’s mandatory to claim DTAA benefits under Section 90(4). Key points:

  • It’s valid for one financial year — you renew it annually.
  • Each country has its own process (in the UAE it’s from the FTA; in the US, Form 6166; in the UK, from HMRC).
  • If it’s not in English, get a certified English translation.

Form 10F — and why you almost always need it

Form 10F is a self-declaration that supplies the details Indian authorities need if your TRC doesn’t already contain them (your tax identification number, status, nationality, period and address). Since 16 July 2022, Form 10F must be filed electronically on the income-tax e-filing portal — a paper form is no longer accepted for treaty claims.

Two things that catch NRIs out:

  • No PAN? You can still file. The portal now allows non-residents to register and file Form 10F without a PAN.
  • A TRC alone is not enough. Banks and payers routinely ask for both; without Form 10F the payer defaults to the higher domestic TDS.

Filing Form 10F, in outline

  1. Log in to the income-tax e-filing portal (or register as a non-PAN user).
  2. Go to e-File → Income Tax Forms → File Form 10F.
  3. Select the correct assessment year (for FY 2025-26, that’s AY 2026-27).
  4. Enter your residency details and the DTAA article you’re claiming under.
  5. Attach your TRC and verify (DSC or OTP).

Timing is everything

To get the lower rate at source, give the payer (your bank, tenant or company) your TRC and Form 10F before the income is paid. If you miss that and TDS is deducted at the full rate, you don’t lose the benefit — but you now have to claim it back as a refund when you file your ITR. Form 10F cannot be filed after the return for that year, so file it early each financial year.

DTAA relief vs foreign tax credit

Two different mechanisms:

  • Exemption / reduced rate in India — claimed with TRC + Form 10F (above).
  • Foreign Tax Credit (FTC) — if income is taxed in both countries, you claim credit in your country of residence for the Indian tax paid, using Form 67 in India where relevant.

We work out which route leaves you better off.

Common mistakes

  • Assuming the TRC is enough — Form 10F is almost always required too.
  • A mismatch between Form 10F, the TRC and your PAN — this gets DTAA claims rejected and can trigger a 143(1)(a) notice.
  • Wrong assessment year on Form 10F.
  • Letting the TRC lapse — it’s annual.

How NRI360 helps

We map the exact treaty rate for your country and income, get your TRC and Form 10F in order before payment so TDS is right at source, and reconcile everything when we file your return — including any refund of excess TDS already deducted.

The Income-tax Act 2025 renumbers several forms from FY 2026-27; “Form 10F” remains the recognised term — we confirm the current form and your exact treaty position in your free review.