Good news for non-residents: Claiming treaty benefits to become easier

Non-resident taxpayers in India will soon have an easier time claiming treaty benefits. The Central Board of Direct Taxes (CBDT) is proposing a number of changes to the procedures involved, which are expected to be more streamlined and efficient. Notification can be issued soon on this (yet to be released).

One of the key changes is that non-resident taxpayers will be able to file Form 10F electronically, without the requirement of a Permanent Account Number (PAN). This will be a significant relief for non-resident taxpayers, who have been facing difficulties in obtaining PAN numbers.

The extended deadline for e-filing Form 10F without PAN has also been extended to September 30, 2023. This gives non-resident taxpayers more time to file the form and claim their treaty benefits.

In addition, the CBDT is also considering allowing non-resident taxpayers to claim treaty benefits without having to submit a Tax Residency Certificate (TRC). This would be a major simplification, as TRCs can be difficult and time-consuming to obtain.

The proposed changes are a welcome step for non-resident taxpayers, and will make it easier for them to do business in India. This is expected to encourage foreign investment and boost economic growth.

Summary of Proposed Changes

Here are some of the key changes that are being proposed:

• Non-resident taxpayers will be able to file Form 10F electronically, without the requirement of PAN.
• The extended deadline for e-filing Form 10F without PAN has been extended to September 30, 2023.
• The CBDT is also considering allowing non-resident taxpayers to claim treaty benefits without having to submit a Tax Residency Certificate (TRC).

Here are some of the benefits of the proposed changes:

• Reduced compliance burden: Non-resident taxpayers will no longer have to obtain a PAN or submit a TRC to claim treaty benefits. This will reduce their compliance burden and make it easier for them to do business in India.
• Increased transparency: The electronic filing of Form 10F will improve transparency and make it easier for the CBDT to track and monitor the claims made by non-resident taxpayers.
• Reduced disputes: The simplified procedures will reduce the likelihood of disputes between non-resident taxpayers and the CBDT. This will create a more favorable business environment for foreign investors.

Overall, the proposed changes are a positive step forward for non-resident taxpayers. They will make it easier for them to claim treaty benefits and reduce their compliance burden. This is expected to encourage foreign investment and boost economic growth in India.