This form is a prerequisite for accessing the advantages offered by the tax treaty and must be accompanied by a tax residency certificate. The Central Board of Direct Taxes (CBDT) has empowered non-residents who lack a PAN to electronically submit Form 10F through the income tax portal, allowing them to create an account without the need to first acquire a PAN.
The income tax portal’s registration tab now offers a fresh choice labelled, “Non-Residents not in possession of and not obligated to possess PAN”, even though there hasn’t been an official announcement regarding this. Registration necessitates the use of a one-time password, and users must furnish their personal information along with the particulars of key individuals in India.
This relaxation comes shortly after the requirement to electronically file Form 10F starting from October 1 of this year. Online registration necessitates having a PAN. In July 2022, the CBDT had initially mandated the electronic filing of Form 10F, but it was later deferred to April 1, 2023, for non-residents who do not possess a PAN and are not obligated to obtain one due to the logistical difficulties of obtaining an online Form 10F without a PAN. This deadline extension was subsequently extended to September 30, 2023.
Form 10F is a self-declaration that non-resident taxpayers must provide alongside their tax residency certificates. This form allows non-residents to avail of TDS relief on income generated in India. According to the Income Tax Act, non-resident individuals or entities can only claim the advantages of a tax treaty if they furnish a valid tax residency certificate from their country of residence. If the tax residency certificate does not include all the necessary information, non-residents must submit a manual Form 10F.
Tax professionals have noted that this easing of regulations will be highly welcomed by many non-residents. However, they have also emphasized the importance of providing a user guide to assist those utilizing the facility, along with clear explanations regarding digital signatures.
The relaxation of the PAN requirement for creating an income tax portal login in India is of significant importance to many non-residents. These individuals have been hesitant to acquire an Indian PAN because they have no taxable income within India’s jurisdiction. This change enables non-residents to fulfill their compliance obligation of obtaining Form 10F without the PAN requirement.