Your guide to TRC and double tax relief

November 27, 2025 Finance Talk Valli Sarvani

Global mobility is on the rise, and many people now earn a living in one country while living in another.

As a result, they often face a common issue known as double taxation, where the same income gets taxed twice.

To reduce this burden, countries sign Double Taxation Avoidance Agreements (DTAA).

India has DTAA with many nations, and one essential document to claim its benefits is the Tax Residency Certificate (TRC).

A TRC confirms that you are a tax resident of a specific country for a financial year.

With this certificate, you can claim tax relief under DTAA and avoid paying tax twice on the same income.

Moreover, TRC helps reduce TDS on foreign income. For instance, the US normally deducts 30% tax on dividends.

However, with an Indian TRC, this rate may drop to about 15% under the treaty.

Investors in global stocks, users of foreign banks, and clients of platforms like Interactive Brokers often need a TRC to enjoy lower tax deductions.

Obtaining a TRC in India is simple. First, you must apply using Form 10FA. You can submit it online on the Income Tax e-filing portal or physically to your Assessing Officer.

You may need documents such as PAN, Aadhaar, address proof, passport, foreign income details, and past tax returns.

After submission, the Income Tax Officer checks your residential status under the 182-day rule and verifies supporting documents.

Once approved, the department issues the TRC in Form 10FB, which becomes your official residency certificate for DTAA claims.

If you live abroad, you must obtain a TRC from that country’s tax authority.

For example, the UAE issues TRC through its Ministry of Finance, the US provides IRS Form 6166, and Singapore issues a certificate through IRAS.

Each country follows its own process, yet the purpose remains the same: to confirm tax residency and allow you to claim treaty benefits.

With the right TRC, you can avoid unnecessary tax payments, protect your foreign income, and manage your finances efficiently, saving both effort and money in the long run.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on March 16, 2017