Earning Abroad? 1 Certificate Saves You Double

If you earn money in two countries, you may be taxed twice on the same income. A Tax Residency Certificate (TRC) is the official proof that lets you claim relief under India's tax treaties with 90+ countries — and legally pay tax only once.

Here's what happened: India has Double Taxation Avoidance Agreements (DTAAs) with over 90 countries — but you must submit a Tax Residency Certificate to actually claim the benefit.. A TRC is an official document issued by your country's tax authority confirming where you are a tax resident — India or abroad — for a given financial year.. Without a valid TRC, Indian tax authorities can tax your foreign income in full, even if you already paid tax on it overseas — meaning you lose money you legally shouldn't..

What you should do: Apply for your TRC in India by submitting Form 10FA to your jurisdictional Assessing Officer — you'll receive Form 10FB as the certificate.. Check if your country of income has a DTAA with India on the Income Tax India website before filing your ITR, so you know your exact tax relief entitlement.. Submit your TRC along with Form 10F to the income payer (employer or bank) abroad before they deduct tax, so TDS is applied at the lower DTAA rate — not the standard rate..

NRIs earning Indian interest or dividends should obtain a TRC from their country of residence and submit it to their Indian bank — this alone can reduce TDS from 30% to as low as 10% under many DTAAs.