TRC & Form 10F: Stop Double Tax on Freelance Payments

Key takeaways

What is a Tax Residency Certificate and why it matters for freelancers

A Tax Residency Certificate, or TRC, is issued by India’s Income Tax Department on Form 10FB after you apply using Form 10FA. It certifies that you are a resident taxpayer of India for a stated period, usually one financial year, April 1 to March 31.

Without a TRC, foreign clients often withhold 20 to 30 percent tax by default. With a TRC, you can invoke India’s Double Taxation Avoidance Agreements so your client withholds little or nothing, and you pay tax in India instead.

Real world impact: a US client may default to 30 percent withholding, but with a TRC and a properly completed IRS Form W-8BEN, the rate often drops to zero to 15 percent, saving you thousands over a year.

For more context, see this practical overview of TRC in India.

When do you actually need a TRC as a freelancer

• Your client or platform asks for it, many US, UK, EU, Canada, and Australia payers will not apply DTAA rates without a TRC.
• You want to avoid double taxation, proactively share a TRC to reduce or eliminate foreign withholding.
• You plan to claim Foreign Tax Credit in India, a TRC plus proof of foreign tax paid supports your ITR.
• You are scaling up, beyond a few lakhs of foreign income, the savings justify the small effort.

If a client operates in a treaty country, a TRC is essential. Review typical requirements here: TRC requirements in India.

Am I eligible, understanding tax residency in India

You are a resident if you stay in India for 182 days or more in the financial year, or for 60 days or more in the financial year and 365 days or more in the preceding four years, subject to exceptions for certain Indian citizens abroad. Most freelancers living and working from India meet the 182 day test easily.

The Assessing Officer verifies residency using your proofs, passport stamps, address documents, returns, and bank statements. You may request a financial year or calendar year period, as long as your proofs support it. For a helpful explainer on freelance taxes, see freelance and taxes in India.

How to get TRC India, the complete application process

Step 1: Confirm eligibility and decide the period

Count your days in India and choose the period to cover, most freelancers pick the full financial year for simplicity. If a client follows a calendar year, you can request that period if you remained resident.

Step 2: Fill out Form 10FA

Provide PAN, address, contact details, period requested, basis of residency, and purpose, for DTAA benefits. A concise reference: TRC meaning, benefits, and application process.

Step 3: Gather supporting documents

• PAN, Aadhaar, passport with visa and stamp pages
• Address proof, rent agreement, utility bills, bank statements
• Latest ITR acknowledgment, computation if available
• Freelance evidence, invoices, contracts, platform profiles
• Self declaration of days stayed in India

Include a brief cover letter if helpful. More on what officers look for: TRC document expectations.

Step 4: Find your Assessing Officer and submit

Locate your jurisdictional AO via the e filing portal, and submit online if available, otherwise file physically and keep the acknowledgment. Quick reference: Tax Residency Certificate essentials.

Step 5: Track and respond to queries

Processing typically takes one to four weeks. If the AO requests additional proof, reply promptly with clear documents to avoid delays.

Step 6: Receive your TRC on Form 10FB

Once approved, you get a one page certificate stating your name, PAN, address, and the certified period. Keep digital and printed copies. For a recap of the flow, see this guide to TRC.

Documents checklist, what you will need

Identity and PAN

• PAN copy
• Aadhaar, masked
• Passport, photo and travel pages

Address proof

• Rent agreement or lease
• Utility bills during the period
• Bank statements reflecting your Indian address

Tax and income records

• Latest ITR acknowledgment
• Income computation or tax payment proof, if any
• Bank statements showing freelance deposits

Freelance work evidence

• Invoices, contracts, engagement letters
• Links to Upwork, Fiverr, LinkedIn, portfolio
• Client emails or correspondence

Residency declaration

• Self declaration of days in India for the requested period

Use this as a pre submission pack, it speeds up approvals. A brief primer is available at Tax Residency Certificate, India.

TRC validity and renewal

Your TRC is valid only for the period stated on Form 10FB. There is no automatic renewal, apply afresh each year, preferably at the start of the financial year.

• Multiple years, usually not issued in one shot, request year wise.
• Past periods, possible if your proofs support it, apply as soon as you realize you need it.
• One TRC, many clients, yes, you can use the same TRC across countries for the same period.

For nuances and officer practices, see this TRC insights article.

Using your TRC for DTAA, sharing with foreign clients

• US clients and platforms, complete IRS Form W-8BEN, claim India US DTAA rate for your service category, attach your TRC.
• EU and UK clients, share your TRC with a short declaration that you are an Indian resident and the income is taxable in India per the treaty.
• Other DTAA countries, reference the treaty and provide your TRC, have the client’s tax advisor confirm rates.
• No DTAA, withholding may not reduce, but you can usually claim Foreign Tax Credit in India with your TRC and proof of tax paid.

Country specific documentation often mirrors the pattern described here, see TRC requirements for more examples.

Common problems and how to fix them

• AO asks for more proof, provide additional bank statements, rent receipts, mobile bills, and a day by day travel log with passport stamps.
• Borderline 182 days, reconstruct your calendar with tickets and entries, explain clearly in a cover note.
• Apostille requested, though rare, get apostille via the Ministry of External Affairs if a client insists.
• No ITR filed yet, you may still be approved with strong alternative proofs, but file your ITR soon after.
• Delay over 30 days, follow up politely, ask if any document is pending, and submit immediately.

Additional troubleshooting pointers are compiled in this TRC application guide.

Timelines, costs, and what to expect

• Processing time, 15 to 30 working days in most cases, faster if documents are complete.
• Government fee, none, the certificate is free.
• Professional fee, optional, typically ₹2,000 to ₹10,000 if you hire a CA.

Expect minimal communication until issuance, then a simple one page certificate with seal or digital signature. Summary references: Tax Residency Certificate basics.

TRC vs other tax forms, avoiding confusion

• Form 10FB, your TRC issued by the Indian Income Tax Department.
• Form 10FA, the application you submit to obtain Form 10FB.
• Form 10F, used by non residents to claim DTAA benefits in India, not for Indian freelancers receiving foreign income.
• W 8BEN or W 8BEN E, US IRS forms to claim treaty benefits, attach your Indian TRC to support your claim.
• Form 15CA and 15CB, for outward remittances from India, usually not relevant when you are receiving money into India.

If you need a refresher on cross border tax for freelancers, skim this primer on how freelancers in India are taxed on foreign payments.

Tools and platforms that simplify cross border payments and records

Karbon Business helps Indian freelancers receive USD, GBP, EUR, and CAD via local rails like ACH, SEPA, or FPS, then settles INR to your Indian bank within 24 to 48 hours. Every payment is paired with an automatically generated e FIRA within 24 hours, which strengthens your documentation for TRC applications and Foreign Tax Credit claims. Flat one percent platform fee and mid market FX, RBI and FEMA compliant, ISO certified, responsive support via WhatsApp and email.

Wise Business, multi currency accounts and low fee transfers, you handle your own FIRA and records.

Payoneer, virtual receiving accounts and card, useful for marketplace payouts, track statements for tax filing.

PayPal, convenient for small invoices, watch total fees and FX spreads.

RazorpayX International, and similar Indian fintech options are emerging with compliance assists.

Pro tip: Choose a platform that exports invoices, payment history, and FIRA or equivalent proofs in a few clicks, your AO will love clean, complete packs.

How Karbon Business supports your TRC application and tax compliance

Karbon does not issue TRCs, only the Income Tax Department can, but it gives you the building blocks your AO expects. Every foreign payment comes with an invoice, settlement record, and an e FIRA, downloadable on demand. This helps you prove foreign income credits into India, match deposits to invoices, and respond quickly to AO queries. Faster INR settlement, typically within 24 to 48 hours, also makes your bank statements cleaner, which supports your residency and income story.

A quick checklist you can print and keep

Before you apply:

• Check residency days, 182+ or 60+365 rule
• Pick your period, financial year or calendar year
• Gather PAN, Aadhaar, passport, address proofs, ITR, bank statements, invoices

Application:

• Fill Form 10FA carefully
• Attach complete documentation pack
• Find AO via the e filing portal
• Submit online or physically, keep acknowledgment

After submission:

• Track status, respond to queries
• Receive Form 10FB, store digital and physical copies

Using your TRC:

• Share with clients along with W 8BEN or local declarations
• Keep invoices, payment proofs, withholding certificates
• Claim Foreign Tax Credit in your ITR if applicable
• Note expiry and plan renewal

Annual reminders:

• Renew TRC each year if you keep working with foreign clients
• File ITR on time, include foreign income, claim credits

FAQ

How to get TRC India if I am a freelancer working with US or UK clients and they are cutting high TDS?

Apply via Form 10FA with PAN, address, passport, ITR, bank statements, and freelance proofs, receive Form 10FB as your TRC in one to four weeks, then share it with your clients. For US, attach it to a W 8BEN so they apply India US DTAA rates. Using Karbon Business for invoicing and e FIRA gives you neat records to support the application.

DTAA ka benefit kaise milega agar client pehle se 30 percent withhold kar raha hai?

Future payments ke liye apna TRC bhejein aur W 8BEN ya client ke local forms file karein so reduced treaty rate apply ho. Jo tax pehle kat chuka hai, uska refund aap client ke country me return file karke le sakte hain, ya India me Foreign Tax Credit claim kar sakte hain, iske liye TRC, invoices, bank credits, aur withholding certificates rakhein. Karbon Business ke e FIRAs aur statements se matching asaan ho jata hai.

TRC ke liye kaun se documents sabse zaroori hote hain for Indian freelancers?

PAN, Aadhaar, passport with travel stamps, Indian address proof, latest ITR acknowledgment, Indian bank statements showing freelance credits, invoices and contracts, plus a self declaration of days in India. Karbon Business se milne wale invoices aur e FIRA strong supporting proof ke taur par kaam aate hain.

Kya TRC har saal renew karna padega, ya ek hi certificate lifetime chalega?

TRC sirf certificate me likhe period ke liye valid hota hai, usually ek financial year. Agle saal ke liye naya TRC apply karna hota hai, process repeat hota hai, lekin documents ready hone par approval jaldi mil jata hai.

Online TRC application possible hai kya, ya AO office jana mandatory hai?

Kuch jurisdictions me e filing portal par Form 10FA upload option hota hai, wahan online submission fastest hai. Agar online option na ho to physical submission AO office me karna hota hai. Pehle portal par AO details check karke call ya email se submission mode confirm kar lein.

Client ne apostille manga TRC ka, kya ye required hota hai generally?

Aksar countries plain TRC accept karte hain, apostille rare cases me chahiye hota hai. Agar client insist kare to Ministry of External Affairs se apostille possible hai. Pehle client ke tax advisor se double check kar lein, unnecessary steps avoid ho sakte hain.

182 din rule borderline hai, international travel zyada tha, to residency prove kaise karu?

Passport entry exit stamps, boarding passes, hotel bills, bank and phone records ke basis par day wise calendar bana kar submit karein. Clear computation aur self declaration attach karein, AO ko residency period samajhne me asaani hogi.

Kya bina ITR file kiye TRC mil sakta hai, main naya freelancer hoon?

Ho sakta hai, agar baaki proofs strong hain, lekin ITR file karna aapke case ko kaafi strengthen karta hai. Jaldi se ITR file karein, future TRC renewals aur tax notices handle karna bhi easier ho jata hai.

US client ke liye W 8BEN me kya fill karu jab main Indian sole proprietor freelancer hoon?

W 8BEN individual form use karein, treaty claim section me India US DTAA ke relevant article aur reduced rate mention karein, aur apna Indian TRC attach karein. Payment platform ya client portal me document upload karna hoga. Karbon Business se banne wale invoices attach karke audit trail strong rakhein.

Foreign Tax Credit India me claim karne ke liye kya proofs chahiye hote hain?

TRC, foreign tax withholding certificate ya statement, invoices, payment receipts, bank credits, aur conversion details. Karbon Business ke e FIRA aur payout records is matching ko simple banate hain, ITR me FTC schedule fill karte waqt yeh sab handy rakhein.

TRC ke bina Upwork, Fiverr, ya direct client par payments par kya impact aata hai?

TRC ke bina default higher withholding apply ho sakta hai, US me 30 percent tak. TRC share karne par, plus W 8BEN ya local forms, withholding substantially reduce ho sakta hai. Karbon Business par receive kiye payments ka documentation aapke TRC aur treaty compliance ko support karta hai.

Karbon Business use karne se TRC application me real benefit kya milta hai for freelancers?

Har incoming foreign payment ke saath invoice, settlement trail, aur e FIRA 24 hours ke andar mil jata hai, jisse AO ko residency aur income proofs ek jagah milte hain. Quick INR settlement bank statements clean rakhta hai, FTC aur ITR reconciliation smooth ho jata hai, aur TRC queries ka response dena fast ho jata hai.

Final thoughts, take control of your cross border tax compliance

TRC lena ek short, structured process hai, lekin uska impact bada hai, you keep more of your earnings, avoid double tax, and present a professional, compliant profile to global clients. Apply early, keep documents organized, and pair your TRC with platforms that produce reliable invoices and e FIRAs, this combo makes DTAA claims and ITR filings straightforward.

Disclaimer: This article is for general education. DTAA rates, forms, and processes vary by country and may change. Confirm details with your client’s finance or tax team, and consult a qualified CA for advice for your situation. Always refer to the official e filing portal for the latest procedures.