10F: Avoid Delays in Cross-Border Payments

Every year, millions of dollars in cross-border payments are delayed or withheld simply because of incomplete tax documentation. For non-residents earning in India, the most common roadblock is a missing or incorrectly filed Form 10F.

What Is Form 10F and Why It Matters?

Form 10F in India is a declaration required from non-residents to claim benefits under Double Taxation Avoidance Agreements (DTAA). It works alongside the Tax Residency Certificate (TRC) to prove residency status, reduce withholding tax rates on eligible income, and ensure smooth cross-border transactions. Countries that have signed a DTAA with India allow such benefits, making it essential for tax compliance – especially for non-residents with Indian-sourced income.

Issues with Non-Compliance:

Loss of DTAA benefits

Higher withholding tax rates
Delays in payments
Risks of higher penalties

Who Must File Form 10F?

Foreign Individuals: Who are earning consultancy fees, royalties, and interests from India.
International firms: Foreign companies which provide services or goods to Indian clients.
Expat consultants: Foreign consultants and freelancers who are working remotely for Indian clients.

Common Reasons for Payment Delays in Cross-Border Transactions

Regulatory and compliance procedures are different in every country which slows down the process.
Delays in fund transfers and banking systems.
Communication issues due to different official languages, along with time zone and working hours differences, lead to the delays.
Customs clearances extend transaction timelines.
Technical issues like cyber-security etc. may slow down the procedure.

Filing Form 10F eases this hurdle – it enables faster payment processing by allowing Indian payers to remit funds without legal or tax delays. It also helps non-residents build trust with Indian partners by demonstrating proactive tax compliance.

How Indian Payers Use Form 10F and TRC to Determine the Correct Tax Rate?

Valid TRC: The tax authorities validate the residency status by providing TRC to non-residents.

Form 10F: Submitting Form 10F in order to declare their residency and eligibility for DTAA benefits.

DTAA provisions: Both TRC and Form 10F help to assess the DTAA provisions to determine the applicable tax rate.
Correct Tax Rate: The tax rate is deducted at the treaty rate and can comply with tax laws without double taxation.

Example:

If the tax rate under DTAA is 10%, failing to file Form 10F could result in the company being levied a total tax of 20% instead of applicable treaty rate.

Guide To Filing Form 10F In India

Form 10F filing process involves two types of filing:

Filing with PAN — This requires Indian income tax portal login.
Filing without PAN — There is an availability of a guest filing option as well.

Required Details / Documents Needed:

Status of taxpayer (Individual/Company)
Proof of identity (passport/company registration)
Nationality and Taxpayer Identification Number (TIN)
Address in the country of residence
TRC from home country and period of residency
Indian income details or contract copy

Common Mistakes to Avoid When Filing Form 10F:

Incorrect TIN or residency period.
DTAA filing errors like missing or invalid TRC.
Using outdated forms or ignoring CBDT updates.
Filing too close to payment due date.

Latest Updates in Form 10F Filing Rules – 2025 CBDT Amendments:

There was digital-only filing mandate which required PAN for registration.
This had an impact on the foreign companies without PAN.
Now, even non-residents without PAN can easily register from the online portal by using guest login.
Non-residents may need to provide an Indian phone number for OTP purposes.
Filing must be done using a Digital Signature Certificate (DSC) which is obtained is India.

Benefits of Using Experts:

Accuracy with filing and time saving.
Compliance by adhering to all the tax laws and regulations.
Quick processing for implementing risk mitigation strategies.

How AKM Global’s Team Works with Foreign Clients?

AKM Global has been providing help and support to non-resident individuals / entities by:

Assisting with filing Form 10F and DTAA consultancy.

Providing strategic planning for better compliance.

- Ensuring zero penalties and risks.

Adhering to the latest updates on Indian/international tax laws and regulations.
Providing cross-border tax services

Quick Filing Checklist for Non-Residents:

Form 10F checklist includes:

TRC from home country.
TIN and identity proof.
Portal access or guest filing.
Filing confirmation and saving acknowledgment.

To unlock the DTAA benefits and receive timely cross-border payments without penalties and delays, filing Form 10F is the key.

Don’t let paperwork hold up your payments. Our tax compliance experts at AKM Global can help you file Form 10F and TRC quickly and correctly, so you can enjoy smooth, hassle-free cross-border transactions.

Contact us now or email us today at [email protected].