Tax Residency Certificate (TRC) – Form 10FB: Process, Documents & Professional Fees (Complete Guide)

Contents Covered

• What is Tax Residency Certificate (TRC)?
• Why do Foreign Clients Ask for TRC?
• Who Can Apply for TRC in India?
• Forms Involved in TRC
• Step-by-Step Process to Obtain Form 10FB (TRC)
• Additional Documents Usually Required by Foreign Clients
• Professional Fees for Obtaining TRC (India)
• Why TRC Should Not Be Treated as a Mere Form Filing
• Final Thoughts

When an Indian business earns income from a foreign country, it is very common for the overseas client or payer to ask for a Tax Residency Certificate (TRC). This document helps them apply DTAA (Double Taxation Avoidance Agreement) benefits and avoid excess withholding tax.

In this blog, we explain what TRC is, why it is required, the complete process to obtain Form 10FB, documents involved, and how much professional fee is generally charged — in a simple and practical manner.

What is Tax Residency Certificate (TRC)?

A Tax Residency Certificate (TRC) is an official certificate issued by the Indian Income Tax Department confirming that the taxpayer is a resident of India for a particular Financial Year.

TRC is issued in Form 10FB and is governed by Section 90 & 90A of the Income Tax Act, 1961.

Why do Foreign Clients Ask for TRC?

Foreign businesses request TRC to:

• Apply DTAA benefits
• Reduce or eliminate withholding tax in their country
• Ensure the income is taxed only in the country of residence
• Comply with their local tax laws

Without TRC, foreign payers may deduct higher tax (10%–30%) before releasing payment.

Who Can Apply for TRC in India?

TRC can be obtained by:

• Individuals
• Proprietorships
• Partnership Firms
• LLPs
• Companies

Condition: The applicant must be a resident in India for the relevant Financial Year.

Forms Involved in TRC

Step-by-Step Process to Obtain Form 10FB (TRC)

Step 1: Login to Income Tax Portal

Visit 👉 https://www.incometax.gov.in and login using PAN credentials.

Step 2: File Form 10FA

Navigate to:

e-File → Income Tax Forms → File Income Tax Forms → Form 10FA

Step 3: Fill Required Details in Form 10FA

Key details required:

• Status (Individual / Company / Firm / LLP)
• Assessment Year
• Residential status (Resident)
• Country for which TRC is required
• Period of residency (Financial Year)
• PAN and address details
• Purpose: Claim DTAA benefits

Accuracy is critical — details must match PAN records.

Step 4: Verification & Submission

• Companies / LLPs: Digital Signature (DSC)
• Individuals / Proprietors: DSC or EVC

Acknowledgement is generated upon successful submission.

Step 5: Processing by Assessing Officer

The jurisdictional Assessing Officer verifies the application.

⏱️ Usual processing time: 3–7 working days

Step 6: Download Form 10FB (TRC)

Once approved:

e-File → View Filed Forms → Download Form 10FB

This PDF is the official Tax Residency Certificate.

Additional Documents Usually Required by Foreign Clients

Along with TRC, foreign payers often ask for:

• Form 10F (self-declaration)
• No Permanent Establishment (PE) Declaration
• PAN copy
• GST registration (if applicable)

Providing a complete documentation pack avoids delays in payment.

Professional Fees for Obtaining TRC (India)

Standard Market Fee Structure

1. TRC Only (Form 10FA → 10FB)
   ₹3,000 – ₹6,000 per Financial Year per country
2. TRC + Form 10F + No PE Declaration (Detailed compliance)
   ₹5,000 – ₹10,000

Why TRC Should Not Be Treated as a Mere Form Filing

Obtaining TRC:

• Enables DTAA benefit
• Prevents excess foreign tax deduction
• Involves professional responsibility
• Impacts cross-border tax compliance

Correct documentation can save clients significant tax cost, making professional involvement essential.

Final Thoughts

If your business earns income from overseas clients, Tax Residency Certificate (Form 10FB) is a critical compliance document. Proper filing, timely follow-up, and complete DTAA documentation ensure smooth foreign remittances and tax efficiency.

For hassle-free TRC processing and DTAA support, it is always advisable to consult your Chartered Accountant experienced in International Taxation.