Mandatory Tax Residence Certificate

Batra highlights another unfavourable aspect of DTC on NRIs. He says that an NRI will not be eligible for receiving tax benefits in India if (s)he does not obtain a ‘Certificate of Tax Residence’ from the authority governing the country (s)he hails from. The concerned NRI will have to compulsorily produce this certificate by submitting a prescribed form. Current norms and regulations also provide for this certificate but are only required in certain cases, like – if an NRI is undergoing a routine check-up or an investigation. But DTC has made this certificate an obligatory condition.