A Tax Residency Certificate (TRC) is an official document issued by the tax authority of a country certifying that a person or entity is a tax resident of that country for a specific financial year.

Purpose:

• To claim benefits under Double Taxation Avoidance Agreement (DTAA)
• To avoid double taxation on the same income in two countries

Who Needs TRC:

• Residents earning income from abroad
• Foreign entities earning income from India
• Taxpayers claiming DTAA benefits

Summary

TRC proves tax residency and helps claim tax treaty benefits, reducing or eliminating double taxation.