How to Apply for Tax Residency Certificate in India (Fix Adsense Issue)

If you want to solve the Adsense Tax Residency issue and want to create a Tax residency certificate in india then this article is going to be super helpful for you.

You are seeing an Payment error like this in Google Adsense saying “Some additional documents are required to verify your tax information. We’ll use the default applicable tax rules for your tax residency country until your info is accepted.”

This happens when you Apply for the singapore tax info and Select Yes in Tax exemption section.

If you want to solve this error in Adsense, then you have to apply for a Tax residency certificate and the Process of getting this is quite difficult. There is no online process for applying for this certificate. You need to apply for this offline in the income tax department.

I will show you how you can apply for that in a moment. But if you don’t want Tax exemption in singapore than you can simply select No as shown below and solve this issue immediately.

In this way, The payment issue “Some additional documents are required to verify your tax information.” will be solved immediately.

But You will not get the Tax exemption under the Double Taxation Avoidance Treaty (DDTA) and have to pay higher taxes for your income in singapore.

Note: “Double Taxation Avoidance Agreement (DTAA), is a bilateral agreement between two countries designed to prevent the same income from being taxed twice. This typically applies when individuals or businesses earn income in one country but reside in another. The treaty aims to encourage cross-border trade and investment by eliminating or reducing the double tax burden on the same income, capital, or assets.”

Steps to Apply for Tax Residency Certificate in India

Here’s a step-by-step guide on how to apply for a Tax Residency Certificate (TRC) in India:

1. Determine Eligibility for TRC

• You must be a tax resident in India for the relevant financial year as per Indian tax laws (i.e., you should have stayed in India for 182 days or more in that year).

2. Collect Required Documents

• PAN Card: Your Permanent Account Number (PAN) is necessary for tax identification in India.
• Proof of Residency: This can include a passport, Aadhar card, utility bills, or rental agreements to confirm your residential status.
• Passport-sized Photographs
• Income Details: Bank statements, income statements, and tax return filings for the relevant year to substantiate your income and residency.
• Tax Filing Proofs: Make sure you have filed your Income Tax Returns (ITR) for the previous financial year.

3. Complete Form 10FA

• Form 10FA is the application form to request a TRC. You can find it on the Income Tax Department’s website or in the tax office.
• Fill out Form 10FA accurately, providing your personal details, PAN, residency details, and the financial year for which the certificate is required.

4. Submit Form 10FA to Your Assessing Officer

• Visit the local Income Tax office or your Assessing Officer’s office and submit the filled-out Form 10FA along with the required documents. Follow this Video Tutorial to Know your Assessing Officer (AO)
• Some tax officers may request additional information or supporting documents; be prepared to provide these if asked.

5. Processing and Verification

• The tax authorities will verify your application and documents. If everything is in order, they will process your application.
• Processing times may vary based on your location and tax office; however, this typically takes a few weeks.

6. Receive Form 10FB (Tax Residency Certificate)

• Upon approval, the Income Tax Department will issue Form 10FB, which is your official TRC.
• You can then use this certificate to claim tax benefits under applicable DTAAs in the foreign country where you have income. You can also submit it in the Adsense dashboard and claim Tax exemption benefits.

Video Tutorial

Additional Tips

• Reapply Annually: TRCs are usually valid for one financial year, so you’ll need to reapply each year to continue claiming DTAA benefits.
• Consult a Tax Professional: If you’re unfamiliar with the process, consider consulting a tax advisor, especially if you have complex income sources or multiple tax jurisdictions involved.

Now you can Go to the Adsense Payment section and Under the singapore tax info click on the “Update Tax info” button.

Now here, under the tax exemption select Yes and select the Proof of Tax residency to Tax residency certificate and Upload it by clicking the upload button as shown in the below image.

And all set, Just submit the form and after few hours or days the error will be solved in your Adsense account.

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