Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What a TRC is
A TRC is issued by the tax authority of the country you live in, certifying that you are a tax resident there for the period. It is the basic proof India asks for before letting you use a tax treaty — without it, you get the full domestic rate.
What goes with it
Along with the TRC you provide Form 10F (a self-declaration of treaty details, filed online on the income-tax portal) and your PAN. Banks and companies want all three before applying a reduced treaty rate on your NRO interest or dividends.
A worked example
Example: you live in the UK and earn NRO interest. By giving your bank your UK TRC, an online Form 10F and your PAN, the bank deducts TDS at the treaty rate (around 15%) instead of 30%. Renew the TRC each year, as it is period-specific. If your country of residence does not issue a TRC in the exact Indian format, the income-tax rules allow the required particulars to be furnished in Form 10F instead — so a non-standard TRC is rarely a dead end. The key is to have the documents in the payer’s hands before the income is paid, not after, because the lower rate is applied at deduction. Our NRI tax service can prepare Form 10F and apply the treaty.