How Do You Get a Tax Residency Certificate in India?
- Author:
- Manoj Sharma
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- Editorial team
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Short answer
You get a Tax Residency Certificate in India by applying to your Assessing Officer in Form No. 42 under Rule 75(3) of the Income-tax Rules, 2026. The officer issues the certificate in Form No. 43. Form No. 42 replaced Form 10FA, which applied under Rule 21AB of the 1962 Rules.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Persons resident in India, such as freelancers, firms and companies, who need to prove Indian tax residence to claim a tax treaty benefit in another country | Section 159 of the Income-tax Act, 2025 and Rule 75(3) and 75(4) of the Income-tax Rules, 2026 (earlier section 90 of the 1961 Act and Rule 21AB of the 1962 Rules) | No filing deadline is set in Rule 75. Apply before the foreign payer needs the certificate, usually before the first payment of the period | Not applicable. Without a TRC, the foreign payer may withhold tax at its domestic rate instead of the treaty rate | 9 Oct 2026 |
What is a Tax Residency Certificate in India?
A Tax Residency Certificate (TRC) in India is a certificate from the Income Tax Department stating that a person is resident in India for a stated period. Under the current rules it is issued in Form No. 43, which certifies that the person is a resident of India for the purposes of the Income-tax Act, 2025.
- Purpose: India's tax treaties are entered into under section 159(1) and (2) of the Income-tax Act, 2025. A TRC lets an Indian resident show the other country that the treaty applies to them.
- Application: A resident applies in Form No. 42 to the Assessing Officer, as set out in Rule 75(3) of the Income-tax Rules, 2026.
- Issue: The Assessing Officer, on being satisfied, issues the certificate of residence in Form No. 43 under Rule 75(4).
- Validity: Form No. 43 states the period for which it is valid, and Form No. 42 asks you to name that period (Form No. 43).
- Old names: Up to 31 March 2026 the application was Form No. 10FA and the certificate was Form No. 10FB under Rule 21AB(3) and (4) of the Income-tax Rules, 1962.
For how treaties reduce tax on foreign income, see DTAA for Indian exporters and what is DTAA. For a short definition, see what is a tax residency certificate.
Who needs a Tax Residency Certificate from India?
An Indian resident needs a Tax Residency Certificate when a person in another country asks for proof of Indian tax residence before applying a treaty rate. Rule 75(3) allows any assessee who is resident in India to apply. Whether the foreign payer asks for one depends on that country's rules.
| Situation | TRC from India needed | Why | Best for |
|---|---|---|---|
| Indian freelancer whose foreign client withholds tax on fees | Often, if the client asks for it | The client may need proof of Indian residence to apply a lower treaty rate (Section 159) | Consultants, developers and designers with clients in treaty countries |
| Indian company or LLP receiving service fees from abroad | Often, if the payer asks for it | Form No. 42 lists company, firm and LLP among the statuses that can apply (Form No. 42, Note 4) | Export of services businesses |
| Indian resident claiming credit in India for foreign tax already withheld | Not for the credit itself | Credit in India is claimed in Form No. 44, the statement of foreign income and foreign tax credit (Income Tax Forms, 2026) | Freelancers whose tax was already deducted abroad |
| Non-resident claiming a treaty benefit in India | No, a certificate from the home country is needed | A non-resident must obtain a certificate of residence from the Government of the other country (Section 159(8)) | Foreign clients or vendors paid from India |
| Person not resident in India for the period | No | Rule 75(3) is only for an assessee who is resident in India (Rule 75(3)) | Individuals who moved abroad during the year |
How do you apply for a Tax Residency Certificate in India using Form No. 42?
You apply for a Tax Residency Certificate by filling Form No. 42 and making the application to your Assessing Officer, as required by Rule 75(3). The steps below follow the fields and annexures in the form itself.
- Confirm you were or will be resident in India for the period you need. Individual residence is tested under section 6 of the Income-tax Act, 2025 for tax years from 1 April 2026 (Non-resident FAQ).
- Ask the foreign payer which period the certificate must cover and whether it needs any specific wording or a form of its own.
- Fill Part A of Form No. 42: name, address, communication address in India, PAN, email and contact number.
- Fill Part B: status, nationality or country of incorporation, address and days of stay during the period, the basis on which you claim Indian residence, the period, and the purpose of the TRC.
- Attach the annexures listed in Note 6: passport copies (A-1), incorporation or registration documents (A-2), proof of stay in India (A-3) and any other relevant information (A-4).
- Sign the verification, stating your capacity and PAN, and make the application to your jurisdictional Assessing Officer.
- Answer any query from the Assessing Officer. On being satisfied, the officer issues the certificate in Form No. 43 (Rule 75(4)).
- Send a copy of Form No. 43 to the foreign payer and keep the original with your tax records.
Is Form 10FA still used to apply for a Tax Residency Certificate in India?
Form 10FA was the application under Rule 21AB(3) of the Income-tax Rules, 1962. The Income-tax Act, 1961 was repealed on 1 April 2026, and the application form under the 2026 Rules is Form No. 42. If you need a certificate for a period before April 2026, ask your Assessing Officer which form to use.
- Old application: Form No. 10FA under Rule 21AB(3)
- Old certificate: Form No. 10FB under Rule 21AB(4)
- Current application: Form No. 42 under Rule 75(3)
- Current certificate: Form No. 43 under Rule 75(4)
Where is Form No. 42 for a Tax Residency Certificate filed?
Rule 75(3) says the application is made to the Assessing Officer. Note 7 of Form No. 42 says some information will be pre-filled where possible (Form No. 42). Check the e-filing portal under your login for the current filing route, as the portal process for Form No. 42 could not be confirmed here.
How long does a Tax Residency Certificate from India take to issue?
Rule 75 does not set a time limit for the Assessing Officer to issue Form No. 43 (Rule 75). The time depends on the officer and on how complete your application is. Applying well before the foreign client's payment date and attaching every annexure reduces delays.
What documents and details are needed for a Tax Residency Certificate in India?
A Tax Residency Certificate application needs your identity and PAN details, your address and days of stay for the period, the basis of your residence claim and the purpose of the certificate. Form No. 42 also asks for four annexures in Note 6.
| Item in Form No. 42 | What to give | Best for |
|---|---|---|
| Part A, items 1 to 6 | Name, address, communication address in India, PAN, email and contact number | Every applicant |
| Item 7, status | One of the listed statuses, such as individual, HUF, company, firm or LLP | Every applicant |
| Item 10, address during the period | Each address with period of stay and number of days | Individuals who travelled or moved during the year |
| Item 11, basis of residence | The ground on which you claim to be resident in India | Individuals near the day-count limits in section 6 |
| Items 12 and 13 | The period the TRC must cover and the purpose, which must be specified | Every applicant |
| Annexure A-1 | Passport copies | Individual applicants |
| Annexure A-2 | Documents of incorporation or registration | Companies, firms, LLPs and other entities |
| Annexure A-3 | Proof of stay in India | Individuals proving days in India |
| Annexure A-4 | Any other relevant information | Applicants with unusual facts |
What happens if an Indian resident does not have a Tax Residency Certificate?
Without a Tax Residency Certificate, a foreign payer may not apply the treaty rate and may withhold tax at its own domestic rate. There is no Indian penalty for not holding a TRC. The cost is extra tax withheld abroad, which you may then have to recover through a foreign tax credit in India.
- Higher withholding: The other country decides what proof it needs before applying a treaty. A TRC is the usual proof of Indian residence, so missing it can mean a higher deduction.
- Credit claim: Tax withheld abroad on income taxed in India is reported in Form No. 44, the statement of foreign income and foreign tax credit (Income Tax Forms, 2026).
- Wrong period: Form No. 43 is valid only for the period written on it (Form No. 43). A certificate for one year does not cover the next.
- Records: Keep the TRC, invoices and withholding certificates from the foreign payer together for your return.
If tax was already withheld at a higher rate, ask the foreign payer whether its tax authority allows a refund or correction once a TRC is supplied, and apply for the TRC for that period. If no refund is possible, see foreign tax credit and Form 67 for claiming credit in India.
How is the tax saving from a Tax Residency Certificate calculated?
The saving from a Tax Residency Certificate is the difference between tax withheld at the foreign domestic rate and tax withheld at the treaty rate. Say a freelancer bills a foreign client Rs 10,00,000, and in a purely hypothetical case the client's country withholds 20% without proof and 10% under the treaty. Without a TRC, Rs 2,00,000 is withheld. With a TRC, Rs 1,00,000 is withheld. The Rs 1,00,000 difference reaches the freelancer straight away. Tax withheld abroad may then be claimed as credit in India, subject to the rules on foreign tax credit. The real rates depend on the treaty article and the other country's law, so check the treaty text on the DTAA page of the Income Tax Department.
| Hypothetical scenario | Invoice (Rs) | Tax withheld abroad (Rs) | Amount received (Rs) | Best for |
|---|---|---|---|---|
| No TRC, foreign domestic rate of 20% (hypothetical) | 10,00,000 | 2,00,000 | 8,00,000 | Understanding the cost of not applying |
| TRC given, treaty rate of 10% (hypothetical) | 10,00,000 | 1,00,000 | 9,00,000 | Clients in treaty countries that ask for a TRC |
| TRC given, treaty says the fee is not taxed there (hypothetical) | 10,00,000 | 0 | 10,00,000 | Fees that a treaty leaves to India to tax |
What mistakes do people make when applying for a Tax Residency Certificate in India?
- Old form: Looking for Form 10FA for a new application. Under the 2026 Rules the application form is Form No. 42 (Rule 75(3)).
- Late request: Applying only after the foreign client has already withheld tax. Rule 75 sets no time limit for issue, so apply early.
- Vague purpose: Leaving item 13 blank. Form No. 42 says the purpose of obtaining the TRC must be specified (Form No. 42).
- Wrong period: Asking for a period that does not match the client's tax year or the invoices being paid.
- Day count: Claiming residence without checking the days of stay against section 6 of the Income-tax Act, 2025 (Non-resident FAQ).
- Missing annexures: Leaving out passport copies or proof of stay listed in Note 6 of Form No. 42.
- Form confusion: Mixing up the TRC with Form 10F, which a non-resident files in India under the old rules (Rule 21AB(1)).
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Income-tax Rules, 2026, Rule 75, Rule 75(3) application in Form No. 42 to the Assessing Officer; Rule 75(4) certificate in Form No. 43 (checked 9 Oct 2026)
- Income-tax Act, 2025, Section 159, 159(1)-(3) agreements for double taxation relief; 159(8) non-resident needs certificate of residence from other Government (checked 9 Oct 2026)
- Form No. 42: Application for Certificate of residence, Parts A and B, items 1-14, Notes 4, 6 and 7 (checked 9 Oct 2026)
- Form No. 43: Certificate of residence for the purposes of section 159, Certification and validity period (checked 9 Oct 2026)
- Income Tax Forms, 2026 (Income Tax Department), Form Nos. 41, 42, 43 and 44 descriptions (checked 9 Oct 2026)
- Income-tax Rules, 1962, Rule 21AB, Rule 21AB(3) Form No. 10FA; 21AB(4) Form No. 10FB; 21AB(1) Form No. 10F (checked 9 Oct 2026)
- Double Taxation Avoidance Agreements (Income Tax Department) (checked 9 Oct 2026)
- Non Resident FAQs, Income Tax Act 2025 (e-filing portal), FAQ 1, 6, 9: residence tests under section 6 of the 2025 Act (checked 9 Oct 2026)
- Objective and scope of the New Act FAQs (e-filing portal), FAQ 2: 1961 Act repealed on 01.04.2026 (checked 9 Oct 2026)
Frequently asked questions
Is Form No. 43 the same as a Tax Residency Certificate?
Yes. Form No. 43 is the certificate of residence that the Assessing Officer issues under Rule 75(4) of the Income-tax Rules, 2026. It certifies that the named person is a resident of India for the purposes of the Income-tax Act, 2025, and states the period for which it is valid. Before April 2026 the certificate was Form No. 10FB.
Does a freelancer with PAN automatically count as resident for a TRC?
No. PAN is only an identification number. Residence for an individual depends on days of stay in India under section 6 of the Income-tax Act, 2025, such as 182 days or more in the tax year. Form No. 42 asks for your addresses, days of stay and the basis of your residence claim, and the officer checks them.
Can a company or LLP apply for a TRC in India?
Yes. Form No. 42 lists company, firm, limited liability partnership, Hindu undivided family, trust and other statuses among the persons who can apply. An entity attaches its incorporation or registration documents as Annexure A-2. A company is resident in India if it is an Indian company or its place of effective management is in India.
Do I need a new TRC every year?
Usually yes, because Form No. 43 is valid only for the period written on it. Form No. 42 asks you to state the period for which the certificate is needed. If a foreign client pays you over several years, plan to apply for each period the client's tax authority needs to see.
Is there a government fee for a TRC application in Form No. 42?
Rule 75 of the Income-tax Rules, 2026 and Form No. 42 do not mention any fee for applying for a certificate of residence. Neither the rule nor the form sets a payment step. If you use a tax professional to prepare the application, that cost is separate and depends on the professional you choose.
Is a TRC from India the same as a DTAA certificate from the client's country?
No. A TRC from India proves your residence in India to another country. Under section 159(8) of the Income-tax Act, 2025, a non-resident claiming a treaty benefit in India needs a certificate of residence from its own Government. Each side proves residence with a certificate from its own tax authority.
Can a TRC reduce Indian income tax on foreign fees?
No. A TRC is used to claim a lower rate or an exemption in the other country, and it does not change how India taxes your income. It can reduce the tax withheld abroad. Any tax still withheld abroad may be claimed as a foreign tax credit in India through Form No. 44 under the 2026 Rules.