Recently Ministry of External Affairs (MEA) clarified that passport is just a travel document & a proof of identity. Government notification clarifies passport is a just a travel document, not proof of residency. The document's primary purpose is to enable international travel and establish identity abroad.

From a tax perspective, Passport cannot be seen as a tax residency poof. While passport entry and exit stamps may support your travel history, they do not, by themselves, determine your residential status under the Income-tax Act or establish  eligibility for benefits under a Double Taxation Avoidance Agreement (DTAA),

Therefore, to claim DTAA benefits, make sure you file Form 41, & obtain TRC from your country of

residency.

Important tip: Don’t rely on passports stamps entry & exit stamps to claim exemption from tax in India under a DTAA. Ensure that you maintain appropriate travel records and obtain the necessary tax residency documentation, including a valid TRC and, where applicable, Form 41.

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