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Form 10F India (now Form 41): how a foreign company claims treaty benefits in 2026

ATB Knowledge Series · 11 min read · Published October 2026

Short answer: A foreign company claims an Indian treaty (DTAA) withholding rate on payments from 1 April 2026 by e-filing Form 41 once per Indian tax year, with its tax residency certificate (TRC) uploaded, and sending the acknowledgement number to each Indian payer [1][2][5]. Form 41 replaces Form 10F, the self-declaration a non-resident previously gave an Indian payer to claim a treaty rate. Form 41 needs no Indian PAN, but a company taxed at a treaty rate below India's 20% domestic rate generally must still file an Indian return, so plan for a PAN [30]. The TRC and Form 41 are necessary but not sufficient: after Tiger Global, payers also want beneficial-ownership, no-PE and principal purpose test declarations that your company's substance must support [18][24].

Who this is for: heads of tax, controllers and general counsel of UK, US and European groups asked by an Indian payer for "Form 10F and TRC".

What changed on 1 April 2026: Form 10F became Form 41

The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026 (first tax year 2026-27) [13]. Under s.159(8) a non-resident claiming treaty relief needs a certificate of residence plus prescribed information, and Rule 75 of the Income-tax Rules 2026 prescribes Form 41 [1][2]. Two changes matter:

  • No exemption for "complete" TRCs. Old Rule 21AB(2) excused Form 10F where the TRC showed every particular [3]; Rule 75 has no equivalent [2][21].
  • The TRC is uploaded to the form (field 13) [4][7].

Forms 15CA/15CB are now 145/146 and the lower-deduction certificate is Form 128 [10][13]. Payments credited or paid up to 31 March 2026 stay under Form 10F.

The four conditions for a treaty rate in India

Condition Legal basis Evidence the Indian payer will want
1. Resident of the treaty country s.159(8)(a) TRC covering the Indian tax year (1 April–31 March) [5]
2. Prescribed information s.159(8)(b), Rule 75 E-filed Form 41 and its acknowledgement number (ARN) [2][6]
3. Beneficial owner; no Indian PE Treaty articles Signed declarations, usually with an indemnity [24][25]
4. Not abusive Principal purpose test (PPT) via the MLI (UK, Dutch, UAE, Singapore treaties, from 1 April 2020); US limitation on benefits (Art 24); GAAR PPT/LOB declaration; substance evidence on file (Rule 75(2)) [2][27][28]

GAAR, which overrides treaties (s.159(6)), applies only where the year's tax benefit exceeds INR 3 crore; the PPT has no threshold [1][28][34].

European parents: check the rate. Dutch and French companies have claimed 5% on dividends through most-favoured-nation (MFN) clauses. In Nestle SA (19 October 2023) the Supreme Court required a specific Indian notification; none has been found for either, and the Income Tax Department's own treaty-rate table prints 10% for both, so claim 10% [31][35]. A new India–France protocol signed on 23 February 2026 was not yet in effect at the last check [26]. Switzerland withdrew its unilateral MFN from 1 January 2025 [32].

Getting the tax residency certificate (TRC) at home

The TRC must come from your home tax authority and cover India's April–March year [5].

UK: HMRC certificate of residence

Companies use HMRC's online certificate-of-residence service (Large Business customers with December year-ends can pre-order). HMRC asks for the treaty, income and period and, where required, confirmation of beneficial ownership; it refuses companies not entitled to treaty benefits and will not certify a future date [14]. An April certificate may not cover the whole Indian year, so agree with the payer whether it wants a later top-up. Allow several weeks.

US: IRS Form 6166

File Form 8802. Certification runs by calendar year, cannot be requested before 1 December of the prior year, and needs at least 45 days [15]. The non-individual fee rises from USD 185 to USD 230 for applications postmarked from 1 October 2026 [16]. Payments either side of 31 December need two certificates; a June dividend needs one. Enter the certificate's own period in Form 41 field 11 [7]. See US–India tax treaty: guide for US companies.

Germany, the Netherlands and other EU states

German companies obtain a free Ansässigkeitsbescheinigung from their Finanzamt [17]; Dutch companies apply to the Belastingdienst. Most are calendar-year, as in the US.

How to fill Form 41 (Form 10F) online: step by step

  1. Register on the e-filing portal; without a PAN, use "Non-residents not holding and not required to have PAN" [5][6].
  2. Complete "My Profile", then e-File > Income Tax Forms > File Income Tax Forms > "Income Tax Act 2025 forms" > Form 41; select the tax year [6].
  3. Part A: name, addresses, PAN (if any), e-mail, phone. Part B: status, country, home TIN, TRC period, foreign address; upload the TRC [7].
  4. Verify: by OTP without a PAN; by EVC or digital signature with one, and a company should expect to need a DSC [5][6]. Form 41 cannot be edited, so match names and TINs to the TRC first [5].
  5. Send the ARN and TRC to every Indian payer.

File before the tax year's first payment; there is no deadline, but without Form 41 and a TRC the payer must withhold at the domestic rate [5]. See India withholding tax rates 2026 and how to repatriate profits.

PAN and the Indian return: the step most groups miss

  • Withholding without a PAN. For interest, royalties, fees for technical services (FTS), dividends and capital-asset transfers, Rule 217 (read with s.397(2)) avoids the 20% no-PAN rate if the payer receives your name, e-mail, phone, foreign address, TRC and TIN [8][22][26].
  • Filing a return. A foreign company escapes filing only where its Indian income is solely such passive income taxed at source at no less than the domestic s.207 rate (s.207(8)) [30]. Treaty rates of 10% or 15% are lower, so it normally must file by the s.263(1) due date, which needs a PAN.
  • Form 128, refunds and appeals also need a PAN [9].

Apply for the PAN when the first Indian flow is set up.

Three routes to the treaty rate: decision table

A. Treaty rate at source B. Form 128 nil/lower certificate C. Withhold now, refund later
Documents TRC, Form 41 ARN, declarations TRACES application [9] Indian return; refund under s.431 [36]
PAN Not to withhold; yes for the return the treaty rate usually triggers Required Required
Lead time Days, once the TRC is in hand Weeks; before the payment [9] Usually a year or more after the return is filed
Cash cost None None once issued Excess until refunded; s.437 interest 0.5% a month from 1 April after the tax year if the return is on time (else from filing), none on refunds under 10% of tax [12]
Best for Standard dividends, royalties, interest Non-"make available" services, UAE service fees, no-PE income, treaty-exempt gains Last resort

Worked example: UK group, INR 50 crore from India

Illustrative only. In tax year 2026-27 a UK plc receives from its Indian subsidiary dividends of INR 40 crore, technical fees of INR 6 crore ("make available" assumed met) and royalties of INR 4 crore. Its Indian income exceeds INR 10 crore, so the domestic rate is 20% × 1.05 surcharge × 1.04 cess = 21.84% [26][29][37][38]. UK treaty rates: dividends 10%, royalties and fees 15% [27][35] (see UK–India double tax treaty: guide for UK companies). FX: INR 127 = GBP 1, INR 96 = USD 1, INR 107 = EUR 1 (FBIL reference rates, 12 October 2026, rounded) [39].

Flow INR crore Domestic 21.84% Treaty rate Treaty tax Over-withholding if the pack fails
Dividend 40.00 8.736 10% 4.000 4.736
Service fees 6.00 1.310 15% 0.900 0.410
Royalty 4.00 0.874 15% 0.600 0.274
Total 50.00 10.920 5.500 5.420

What the numbers show:

  1. A failed pack costs INR 5.42 crore (about GBP 427,000 or USD 565,000) of cash at once.
  2. Recovery needs a PAN and a return, which the plc must file anyway because it took rates below 20%. With an on-time return and a refund on 31 March 2028, s.437 interest from 1 April 2027 is 5.42 × 0.5% × 12 = INR 0.33 crore [12].
  3. UK and US credit rules generally deny relief for foreign tax avoidable by claiming treaty relief (TIOPA 2010 s.33; Treas. Reg. §1.901-2(e)(5)), and the UK exempts most dividends. Unrefunded excess is a permanent cost.
  4. If the services do not "make available" know-how, treaty tax on the INR 6 crore could be nil, but payers rarely apply nil themselves; use Route B.

What the Indian payer will ask you to sign: beneficial ownership and the principal purpose test

Payers carry the risk. Royalties, fees and interest paid abroad without correct withholding are non-deductible until the tax is paid (s.35(b)(ii)) [11]; for any payment, dividends included, the payer is an assessee in default, paying interest of 1% a month for failure to deduct and 1.5% for failure to deposit (s.398) [23]. So payers and registrars demand the TRC, Form 41 ARN, beneficial-ownership, no-PE and PPT declarations and an indemnity, with cut-offs before dividend record dates [24][25]. On PE risk, see Permanent establishment in India (employees, EOR, agents).

Read the PPT line before signing. In Tiger Global (15 January 2026) the Supreme Court held a TRC "necessary but not conclusive" and examined where control and decisions actually sat [18]; commentators read it as shifting the burden to the taxpayer once the Revenue raises a prima facie case [19]. In Hareon Solar Singapore (Delhi ITAT, 30 January 2026) a Singapore company lost treaty relief despite its TRC: no employees or office, three of five directors and the bank signatories offshore, TRC obtained after the sale [20]. Both were capital-gains cases; we know of no reported decision yet applying Tiger Global to a dividend or royalty rate at source.

If the payment goes to a UAE, Dutch or UK holding company

Here the declarations bite. The company must show it controls the income: board meetings where it is resident, local directors who decide, its own bank mandates and staff. A company resembling Hareon Solar should not sign. The India–UAE treaty also has no FTS article, so fees to a UAE service company are business profits, taxable in India only through a PE [33][35]; payers will want a Form 128 certificate or a robust no-PE declaration before applying nil. Whether your holding jurisdiction earns its place: Invest in India: choosing a holding company jurisdiction (hub).

Why treaty claims get rejected: risks ranked

  1. TRC period mismatch: calendar-year certificate, April–March claim.
  2. Paperwork after the payment date.
  3. Name or TIN mismatch across TRC, Form 41 and invoice.
  4. No ARN, or Form 41 filed for the wrong year.
  5. Unsupportable PPT or beneficial-ownership declarations.
  6. Un-notified MFN rate claimed by a Dutch or French parent.
  7. Mis-characterised services claimed as non-FTS without Form 128.
  8. No PAN: no return filed, or a PAN-dependent route attempted.

Checklist to forward to your Indian payer or subsidiary

  • TRC in the exact legal name, covering the Indian tax year (or both calendar years)
  • Form 41 e-filed for 2026-27; ARN saved and sent
  • Rule 217 details sent if no PAN; PAN applied for and Indian return diarised
  • Treaty rate checked (MFN, LOB, "make available", UAE no-FTS)
  • BO, no-PE and PPT declarations reviewed before signature; supporting board records on file (Rule 75(2))
  • Form 128 sought before payment for nil-rate or contestable positions
  • Diary: Form 8802 from 1 December; renew TRC and Form 41 each April

How ATB Corporate can help

ATB Corporate advises companies and investors on entering, structuring and operating in India and the UAE: choosing the entry route and holding structure, tax and exchange-control planning, regulatory compliance, and setting up and running the local business. To discuss your plans, contact ATB Corporate.

FAQ

Is Form 10F still mandatory in 2026, or is it Form 41 now?

Form 41 has replaced Form 10F and is mandatory for India treaty claims on payments made from 1 April 2026, even where the tax residency certificate (TRC) shows every particular. A foreign company e-files Form 41 once per Indian tax year, uploads its TRC and sends the acknowledgement number (ARN) to each Indian payer. Form 10F continues to cover FY 2025-26 and earlier years [2][5].

Do we need a PAN to claim India treaty benefits as a foreign company?

No, a foreign company does not need an Indian PAN to file Form 41 or to receive a treaty rate at source, provided the payer has its Rule 217 details (name, e-mail, phone, foreign address, TRC and TIN). However, a company taxed at a treaty rate below India's 20% domestic rate generally must file an Indian return, and the return, Form 128 certificates and refunds all need a PAN, so plan for one [8][9][30].

How long is a tax residency certificate valid for India?

A tax residency certificate (TRC) used for India must cover the Indian tax year, which runs from 1 April to 31 March, and must be renewed annually. A US Form 6166 is certified by calendar year, so a US company receiving Indian payments either side of 31 December needs two certificates to cover one Indian tax year [5][15].

Who signs Form 41 for a foreign company with no Indian director or PAN?

Form 41 for a foreign company with no Indian director or PAN is signed by the company's principal officer, who verifies it by one-time password (OTP) after registering on the e-filing portal as a non-resident not holding and not required to have a PAN. Because Form 41 cannot be edited once filed, the signatory should first check that names and TINs match the TRC [5][6].

What happens if we don't file Form 41: can we claim the tax back?

If a foreign company does not file Form 41, the Indian payer must withhold at the domestic rate, up to 21.84%, instead of the treaty rate. The excess can be claimed back only through an Indian tax return, which needs a PAN; refunds usually take a year or more after the return is filed and carry s.437 interest of 0.5% a month, running from 1 April after the tax year where the return is on time [5][12][36].

What is the principal purpose test, and why is our Indian payer asking us to sign a PPT declaration?

The principal purpose test (PPT) is an anti-abuse rule, added to many Indian tax treaties by the MLI, that denies treaty benefits where obtaining them was a principal purpose of an arrangement. Indian payers ask for a signed PPT declaration because, after the Supreme Court's Tiger Global ruling, a TRC is not conclusive and the payer carries the risk of under-withholding; the declaration must be backed by real substance [11][18][23][28].

Can a Dutch or French parent claim the 5% MFN dividend rate?

No, a Dutch or French parent should not claim the 5% most-favoured-nation (MFN) dividend rate from India, because the Supreme Court in Nestle SA (19 October 2023) required a specific Indian notification and none has been found for either country. Plan on 10%, the rate the Income Tax Department's own treaty-rate table shows for both; a new India–France protocol signed on 23 February 2026 was not yet in effect at the last check [26][31][35].

Sources

  1. Income Tax Department, s.159 Income-tax Act 2025 — https://www.incometaxindia.gov.in/w/section-159-89 (accessed Oct 2026)
  2. Income Tax Department, Rule 75 Income-tax Rules 2026 — https://www.incometaxindia.gov.in/w/rule-75-3 (accessed Oct 2026)
  3. Income Tax Department, Rule 21AB Income-tax Rules 1962 — https://www.incometaxindia.gov.in/w/rule-21ab
  4. Income Tax Department, Form No. 41 explainer — https://www.incometaxindia.gov.in/documents/d/guest/fn-41 (accessed 12 October 2026)
  5. Income Tax Department, Form 41 FAQs — https://www.incometaxindia.gov.in/documents/d/guest/form-41-faqs (accessed 12 October 2026)
  6. Income Tax e-filing portal, Form 41 user manual — https://www.incometax.gov.in/iec/foportal/newformpage/forms/form41-UM
  7. APNIC, filed Form 41 for tax year 2026-27 (June 2026), example of a completed form — https://www.apnic.net/wp-content/uploads/2026/06/Form41-2026.pdf
  8. Income Tax Department, Rule 217 Income-tax Rules 2026 — https://www.incometaxindia.gov.in/w/rule-217-1
  9. Income Tax Department, Form 128 FAQs — https://www.incometaxindia.gov.in/documents/d/guest/form-128-faqs
  10. Income Tax Department, Rule 220 Income-tax Rules 2026 (Forms 145–148) — https://www.incometaxindia.gov.in/w/rule-220-1
  11. Income Tax Department, s.35 Income-tax Act 2025 — https://www.incometaxindia.gov.in/w/section-35-181
  12. Income Tax Department, s.437 Income-tax Act 2025 — https://www.incometaxindia.gov.in/w/section-437-6 (accessed 11 October 2026)
  13. Income Tax Department, FAQs on forms under Income-tax Rules 2026 — https://www.incometaxindia.gov.in/w/faqs-on-forms-as-per-income-tax-rules-2026-1 (accessed 12 October 2026); CBDT press release, Income-tax Act 2025 in force from 1 April 2026 — https://www.incometaxindia.gov.in/documents/d/guest/press-release-income-tax-act-2025-comes-into-force-from-01-april-2026-pdf
  14. HMRC, "Get a certificate of residence" (updated 26 June 2024; accessed 11 October 2026) — https://www.gov.uk/guidance/get-a-certificate-of-residence
  15. IRS, Instructions for Form 8802 (rev. October 2024) — https://www.irs.gov/instructions/i8802
  16. IRS, user fee change for Form 8802 (updated 29 September 2026) — https://www.irs.gov/node/165596
  17. Service Berlin, Ansässigkeitsbescheinigung — https://service.berlin.de/dienstleistung/327837/
  18. DLA Piper, Supreme Court ruling on Tiger Global (4 February 2026) — https://www.dlapiper.com/insights/publications/2026/02/supreme-court-ruling-on-tiger-global-tax-treaty-eligibility-and-indirect-share-transfers
  19. CMS INDUSLAW via Mondaq, "Tiger Global: redefining treaty protection in India" (30 January 2026) — https://www.mondaq.com/india/tax-authorities/1738518/tiger-global-redefining-treaty-protection-in-india
  20. KPMG India Flash News, Hareon Solar Singapore Pte Ltd v DCIT, ITA 2226/Del/2024 (4 February 2026) — https://www.in.kpmg.com/taxflashnews/KPMG-Flash-News-Hareon-Solar-Singapore-1.pdf
  21. KPMG India Flash News, Draft Income-tax Rules 2026 and forms (19 February 2026) — https://www.in.kpmg.com/taxflashnews/KPMG-Flash-News-Draft-Income-tax-Rules-2026-and-Forms.pdf
  22. TDSMAN, higher TDS for non-furnishing of PAN, s.397(2) (27 May 2026) — https://blog.tdsman.com/2026/05/higher-rate-of-tds-for-non-furnishing-of-pan-section-3972-206aa-206cc/
  23. TDSMAN, s.398 Income-tax Act 2025, consequences of TDS defaults (23 July 2026) — https://blog.tdsman.com/2026/07/section-398-of-the-income-tax-act-2025-consequences-of-tds-defaults/
  24. Bosch Ltd, foreign corporate shareholder declaration (April 2026–March 2027) — https://www.bosch.in/media/our_company/shareholder_information/2026/foreigncorporatedeclaration2026.pdf
  25. Advanced Enzymes Technologies, documents for non-resident shareholders (July 2026) — https://www.advancedenzymes.com/wp-content/uploads/2026/07/Documents-for-Non-resident-Shareholder.pdf
  26. PwC Worldwide Tax Summaries, India — withholding taxes (reviewed 11 May 2026) — https://taxsummaries.pwc.com/india/corporate/withholding-taxes (accessed 12 October 2026)
  27. gov.uk, UK–India synthesised text of the MLI and the 1993 Convention — https://www.gov.uk/government/publications/india-tax-treaties/2020-uk-india-synthesised-text-of-the-multilateral-instrument-and-the-1993-double-taxation-convention-in-force
  28. EY India, CBDT Circular 1/2025 on the principal purpose test (22 January 2025) — https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/alerts-hub/2025/01/cbdt-issues-guidance-on-application-of-principal-purpose-test.pdf
  29. Income Tax Department, tax rates for foreign companies (surcharge and cess) — https://incometaxindia.gov.in/Documents/Left%20Menu/tax%20rates-foreign.htm
  30. Text of s.207 Income-tax Act 2025: Taxheal — https://www.taxheal.com/?p=118624; EZTax — https://eztax.in/income-tax-act-2025/section-207 (accessed 12 October 2026)
  31. KPMG, "India: Notification required for benefit under income tax treaty MFN clause" (October 2023), on AO (International Taxation) v Nestle SA (SC, 19 October 2023) — https://kpmg.com/us/en/home/insights/2023/10/tnf-india-notification-required-benefit-under-income-tax-treaty-mfn-clause.html
  32. EY India, Switzerland revokes unilateral MFN benefit under the India–Switzerland treaty (16 December 2024) — https://ey.com/content/dam/ey-unified-site/ey-com/en-in/alerts-hub/12/switzerland-revokes-unilateral-mfn-benefit-under-india-switzerland-tax-treaty.pdf
  33. Income Tax Department, India–UAE DTAA synthesised text — https://incometaxindia.gov.in/DTAA/Synthesized-text-India-UAE-DTAA.htm
  34. EY India, CBDT amends Income-tax Rules on GAAR grandfathering (Rule 128, 2 April 2026) — https://www.ey.com/en_in/technical/alerts-hub/2026/03/cbdt-amends-income-tax-rules-to-clarify-gaar-grandfathering-provisions
  35. Income Tax Department, "Tax rates as per DTAA v. Income-tax Act" — https://www.incometaxindia.gov.in/w/%E2%80%8Btax-rates-dtaa-v.-income-tax-act (accessed 12 October 2026)
  36. Income Tax Department, s.431 Income-tax Act 2025 (refund of tax paid in excess of the amount properly chargeable) — https://www.incometaxindia.gov.in/w/section-431-5 (accessed 12 October 2026)
  37. Finance Act 2026 (Act No. 4 of 2026, assented 30 March 2026), s.3(4)(b), s.3(7) and s.3(16)–(17) (surcharge and health and education cess) — https://www.incometaxindia.gov.in/documents/d/guest/finance-act-2026-pdf-1 (accessed 12 October 2026)
  38. Income Tax Department, First Schedule to the Finance Act 2026 — https://www.incometaxindia.gov.in/w/first-schedule-104 (accessed 12 October 2026)
  39. Reserve Bank of India, FBIL reference rates, 12 October 2026 (USD 95.7485, GBP 126.9185, EUR 107.3022) — https://www.rbi.org.in/ (accessed 12 October 2026)

Disclaimer: This article is general information, not legal or tax advice. Treaty entitlement depends on facts, and Indian, UK, US and EU rules and forms change frequently; verify against current law and take advice before acting.

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