Tax resident certificate is as important for resident Indian as it is for non-residents in India.It is common knowledge now that taxation rules applicable in various countries have provisions for withholding of tax on any payment made to a non-resident. It is also a worldwide rule (almost !) that withholding of tax may not be done or maybe done at a lower rate of tax as determined under Double Taxation Avoidance Agreement between India and that specific nation. But to prove that you are tax resident of India during the year under consideration, you need to submit a Tax Residency Certificate from Indian authorities. This post is trying to solve exactly that problem by explaining –
- Whom to apply for TRC,
- How to apply for TRC?
- Is there any form of application?
- Is there any time limit for issue of certificate?