International Tax
TRC (Tax Residency Certificate) — Meaning
Certificate from a foreign country's tax authority confirming that the holder is a tax resident of that country — required to claim DTAA benefits.
What is TRC (Tax Residency Certificate)?
Tax Residency Certificate (TRC) is issued by the tax authority of the country where a person is a tax resident. For NRIs claiming DTAA benefits in India, the TRC must be obtained from the foreign country's tax authority and submitted to the Indian income tax authority or deductor (bank, tenant, etc.) along with Form 10F. Without TRC + Form 10F, payers must deduct TDS at domestic rates (which may be higher than DTAA rates). TRC is required for every financial year.
More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
