In a major relief to NRI customers, the Central Board of Direct Taxes (CBDT) has given an option to fill manual forms to avoid TDS i.e. tax deducted at source on any kind of payment. As per the new order, NRIs without PAN number will be able to file Form 10F manually. Explain that the last date for filing Form 10F has been fixed as 31 March 2023.
Why is Form 10F necessary for NRIs? Form 10F is to be filled on behalf of NRIs who receive payments from India while staying outside, who do not have PAN and require the residence certificate details of the NRI. This form helps them avoid TDS on income earned or paid in India. Explain that every rupee earned by NRI in India is subject to TDS provisions under Income Tax Act 1961.
Manual filing allowed
Non-Resident Indians (NRIs) had lodged complaints about not being able to fill Form 10F online due to non-availability of PAN. After which the Central Board of Direct Taxes (CBDT) has allowed non-resident individuals (NRIs) to file Form 10F manually, exempting them from TDS deduction. Due to this, NRIs who do not have PAN have also got one-time relief. The board has fixed March 31, 2023 as the last date for filing Form 10F manually.