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.
#foreigncompany #TRC #NRI #nonresidents #DTAA #GCC #companysetup #incometax #passport #MEA #RNOR #CAVidhuDuggal #VidhuDuggalandCompany
