How does an Indian service exporter get a tax residency certificate (TRC)?

A foreign client, platform or tax authority sometimes asks an Indian freelancer, agency or software company to prove that it is resident in India before applying a treaty rate or exemption. The document that proves it is a tax residency certificate (TRC). In India the Assessing Officer issues it on application.¹

This guide covers the process under the Income-tax Rules, 2026, as of October 2026.¹² A TRC for an Indian resident is different from Form 41, which is for non-residents claiming treaty relief in India;¹ see Form 10F and Form 41 filing for that.

What is a tax residency certificate in India?

A tax residency certificate is a certificate of residence that a country's tax authority issues to confirm that a person is resident there for the purposes of a tax treaty. Under rule 75(3) of the Income-tax Rules, 2026, an assessee who is resident in India applies "for obtaining a certificate of residence for the purposes of an agreement referred to in section 159(1) and (2)" in Form No. 42, and under rule 75(4) the Assessing Officer issues the certificate in Form No. 43.¹

• Treaty section: section 159 is the section of the Income-tax Act, 2025 under which India's tax treaties operate.⁶
• Old forms: under the Income-tax Rules, 1962, the application was Form No. 10FA and the certificate was Form No. 10FB, under rule 21AB(3) and (4).³

The certificate confirms residence; the treaty rate itself depends on the treaty and the payer's own process.

Why would a foreign client ask for a tax residency certificate?

A foreign payer or tax authority asks for a tax residency certificate to confirm that you qualify as a "resident" of India under the residence article of the treaty before giving you treaty benefits.⁴⁵ In the India-US and India-UK treaties, Article 4 defines a resident as a person who is liable to tax in that country by reason of domicile, residence, place of management, place of incorporation or a similar criterion.⁴⁵

• Default withholding: for example, a client in a country that withholds tax on services or royalties by default, where the treaty reduces the rate.
• Supplier onboarding: a government or large corporate client whose payment process requires a TRC from every foreign supplier.
• Platforms: a platform or marketplace that asks for proof of residence to apply a treaty rate.

For US payers, the usual document is Form W-8BEN or W-8BEN-E, on which you certify the country where you are resident for treaty purposes (line 14a of W-8BEN-E for entities).⁷ See W-8BEN for freelancers and W-8BEN-E for companies.

Who can apply for an Indian tax residency certificate?

Any registered user of the e-filing portal with a valid PAN can apply for an Indian tax residency certificate in Form No. 42, according to the portal's user manual.²

The manual lists these prerequisites:²

• Registration: you are a registered user of the e-filing portal.²
• PAN: the status of your PAN is "Active".²
• DSC: if you verify with a digital signature certificate (DSC), the DSC is registered on the portal and not expired.²

Check that your PAN is active before starting the form.

How do you apply for a tax residency certificate on the e-filing portal?

You apply for a tax residency certificate by filing Form 42 on the e-filing portal for the tax year you need and e-verifying it.²

1. Open Form 42: log in to the e-filing portal, then go to e-File, Income Tax Forms, File Income Tax Forms.²
2. Select the form and tax year: under the Income Tax Act 2025 tab, choose Form 42 and select the tax year.²
3. Fill Part A and Part B: Part A (Particulars of Applicant) and Part B (Details for Tax Residency Certificate), saving each panel.²
4. Upload attachments: A1 and A2 for individuals, A3 for other applicants.²
5. Preview and proceed: preview the form and click Proceed To E-Verify.²
6. E-verify: verify using OTP, EVC or DSC, as applicable to your PAN.²

After submission you receive an acknowledgement, and a confirmation is sent to your registered email and mobile.² The Assessing Officer then issues the certificate in Form No. 43 once satisfied.¹²

What documents, fees and timelines apply to a tax residency certificate?

A tax residency certificate application needs the Form 42 attachments for your applicant type, and neither a fee nor a processing time is published in the sources checked.¹²

Apply well before the client's payment run, and keep the acknowledgement to show the client that the application is pending.² If a client needs residence confirmed for a period that spans two tax years, ask the client which period it needs, as you may need certificates for both years.²

Keep the TRC with the other documents that support a treaty claim or a foreign tax credit:¹⁷

• TRC records: the Form 42 acknowledgement and the Form 43 certificate.¹
• Client forms: the client's own form, such as Form W-8BEN or W-8BEN-E, as submitted.⁷
• Payment records: the invoice, contract and bank credit for each payment.
• Withholding certificate: if tax was still deducted, you will need it for credit in India (see foreign withholding tax).

What happens if tax is deducted abroad despite a tax residency certificate?

If tax is deducted abroad despite a tax residency certificate, you can seek a refund from the foreign tax authority or claim credit in India, using the withholding certificate as evidence.¹⁷

• Treaty rate caps: the India-US and India-UK treaty pages explain the rate caps.
• Advice: a chartered accountant (CA) can help you decide whether to seek a refund abroad or claim credit in India.

Keep the TRC, the client's form and the withholding certificate together for each payment.

What are the common mistakes with an Indian tax residency certificate?

The most common mistake is filing the wrong form: Form 41 (formerly Form 10F) is for non-residents claiming treaty relief in India, while an Indian resident applies in Form 42.¹

• Using the old forms: Form 10FA and Form 10FB belong to the 1962 Rules.¹³
• Choosing the wrong tax year: the certificate relates to the tax year selected in Form 42.²
• Applying late: no processing time is published.¹²
• Assuming every US client wants a TRC: US payers usually ask for Form W-8BEN or W-8BEN-E.⁷

Ask the client exactly which document and period it needs before you apply.