- Form 10F was renumbered Form 41 under the Income-tax Rules, 2026.
- A TRC, Form 41 and a no-PE declaration let an Indian payer apply your treaty rate instead of 20%.
- If tax was withheld at a lower treaty rate, a foreign company usually still has to file an Indian return.
Why your Indian customer is asking
Indian payers must withhold tax on many payments to non-residents under section 393(2) of the Income-tax Act, 2025 — royalties and fees for technical services at 20% plus surcharge and cess under domestic law. To apply the lower rate in your country’s tax treaty (often 10–15%, or nil for ordinary business profits without a PE), they need evidence. If they get it wrong, the shortfall is theirs — so they ask.
The documents
| Document | What it is | Who issues it |
|---|---|---|
| Tax residency certificate (TRC) | Proof you are tax resident in your country for the year | Your home tax authority (e.g. IRS Form 6166 in the US, HMRC certificate in the UK) |
| Form 41 (formerly Form 10F) | Details the TRC doesn’t contain — status, nationality, tax ID, period, address | You, filed online on India’s income-tax portal |
| No-PE declaration | Your statement that you have no permanent establishment in India | You, on letterhead |
| Beneficial ownership declaration | That you are the beneficial owner of the income | You, on letterhead (often combined) |
| PAN | Indian tax ID — avoids higher withholding and is needed to file Form 41 online | Indian income-tax department, on application |
Form 41: the new name for Form 10F
- From 1 April 2026, the Income-tax Rules, 2026 renumbered Form 10F as Form 41. Indian payers may still say “10F”.
- It is filed electronically on the income-tax portal, which needs a PAN-based login for the non-resident.
- File it for each tax year (April–March), matched to the period on your TRC.
Is the no-PE declaration true for you?
Only sign it if it’s accurate. Staff or contractors in India who conclude contracts for you, an office at your disposal, or long on-site projects can create a PE — see PE risk.
After you’re paid
- Your customer issues a certificate of the tax withheld; claim it as a foreign tax credit at home.
- If too much was withheld, a refund is claimed through an Indian return.
- If your only Indian income is royalties or technical fees and tax was withheld at the full domestic rate, you may not need to file. If a lower treaty rate was used, you usually do.
- Large recurring contracts: a lower-withholding certificate (Form 128) can help.
We can prepare this pack for you — India tax for foreign companies.
Sources
Frequently asked questions
What is Form 41 in India?
What is a no PE declaration?
Is a PAN mandatory for a foreign company receiving payments from India?
How long is a TRC valid for Indian treaty purposes?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.