Suppose you’re living abroad without a Permanent Account Number (PAN), good news! You can now easily submit Form 10F online, along with your tax residency certificate, to enjoy the perks of a tax treaty. The Central Board of Direct Taxes has made it simple for non-residents without a PAN. Just hop onto the income tax portal, file Form 10F electronically, and create an account without the need for a PAN. Easy peasy!
NRIs Don’t Require PAN to File Form 10F
Here’s the scoop: on the income tax portal’s registration tab, there’s a brand-new option for folks who are ‘Non-Residents not holding and not required to have PAN.’ No big announcement, but it’s there! To sign up, just go through a one-time password step and spill the beans on your details and those key individuals in India. Easy-peasy!
Now, you can breathe a bit easier as filing Form 10F online became a must from October 1. Remember, you’ll need a PAN for the online registration dance. Back in July 2022, the CBDT first said you must e-file Form 10F, but the deadline got a makeover, moving to April 1, 2023. This extension specifically helped out non-residents without a PAN. Now, the final stretch gives a little more time, pushing the deadline to September 30, 2023.
What Experts Say?
“This relaxation of obtaining a PAN in India to create the income tax portal login holds considerable significance for numerous non-residents who have been averse to obtaining an Indian PAN due to the absence of any taxable income within India’s jurisdiction, thereby allowing non-residents to fulfil their compliance obligation of obtaining Form 10F without the PAN prerequisite,” mentioned Sandeep Jhunjhunwala, M&A Tax Partner, Nangia Andersen.
“This requirement has created a hurdle for non-residents who wish to claim the benefits of the double tax avoidance treaties. It is important to note that there are still some areas where clarity is needed, such as the requirement to file the tax return by such non-resident taxpayers in case a treaty benefit is availed and whether such a tax return can be filed with login details or will the PAN still be required,” said Yeeshu Sehgal, Head of Tax Market, AKM Global.