As of 2026, Form 10F under the Income Tax Act, 1961 has been renumbered as Form 41 under the Direct Tax Code 2025. The form's purpose remains unchanged: it is a self-declaration filed by non-resident entities and individuals to claim DTAA (Double Taxation Avoidance Agreement) benefits in India. If you are an Indian company paying royalty, fees for technical services (FTS), or any other income to a foreign entity, your foreign counterpart still needs to file this form — just under its new number.

The renumbering is purely administrative. The information required, the process, the supporting documents, and the compliance obligations remain the same. What matters is that you know the new name and file correctly to avoid TDS disputes.

What is Form 41 (Earlier Form 10F)?

Form 41 is a self-declaration form filed by a non-resident taxpayer who wants to claim treaty benefits under a DTAA that India has signed with their country of residence. It supplements the Tax Residency Certificate (TRC) by providing information that TRC may not always contain, such as the taxpayer's nationality, tax identification number, and the period of residence in the treaty country.

Under Section 90 and Section 90A of the Income Tax Act, 1961 (now replaced by the Direct Tax Code 2025), claiming DTAA benefits is conditional on submitting:

• Tax Residency Certificate (TRC) from the foreign country's tax authority
• Form 10F / Form 41 (self-declaration by the non-resident)
• No PE (Permanent Establishment) Declaration
• PAN card (required if ITR is to be filed in India)

Without Form 41, the Indian payer is required to deduct TDS at the rates under Section 115A, which is 20% + applicable surcharge + cess, rather than the often-lower DTAA rate.

Why Was Form 10F Renumbered to Form 41?

The Direct Tax Code 2025 is a comprehensive overhaul of India's direct tax legislation, replacing the Income Tax Act, 1961. As part of this restructuring, the government has renumbered forms, sections, and schedules for consistency and simplicity. Form 10F, which existed under Section 90/90A of the old Act, has been renumbered as Form 41 in the corresponding provision of the Direct Tax Code 2025.

The renumbering reflects the new section numbering in the Direct Tax Code. The substantive law — who must file, when to file, what to declare, and what the consequences of non-filing are — has not materially changed for most foreign entities receiving passive income from India.

Key point: If you have previously filed Form 10F for past years under the old Act, those filings remain valid for those years. For assessment years governed by the Direct Tax Code 2025 (applicable from 2026-27 onwards), you will file Form 41.

Form 10F vs Form 41: What Changed?

Aspect	Form 10F (Old)	Form 41 (New)
Governing Law	Income Tax Act, 1961 (Section 90/90A)	Direct Tax Code 2025
Form Name	Form 10F	Form 41
Purpose	Self-declaration for DTAA benefit	Self-declaration for DTAA benefit (same)
Who Files	Non-resident taxpayer / foreign entity	Non-resident taxpayer / foreign entity (same)
Filing Mode	Electronic (Income Tax Portal)	Electronic (Income Tax Portal)
DSC Required	Yes – DSC of authorised foreign signatory	Yes – DSC of authorised foreign signatory
TRC Required	Yes	Yes
PAN Required	Yes (for ITR filing)	Yes (for ITR filing)
Applicable from	AY up to 2025-26	AY 2026-27 onwards

How to File Form 41 for DTAA Benefits?

The filing process for Form 41 mirrors what was followed for Form 10F. Below is a step-by-step overview for a foreign entity receiving royalty or FTS from India:

Step 1: Obtain a Tax Residency Certificate (TRC)

The foreign entity must obtain a TRC from the tax authority of its country of residence. This certificate confirms the entity is a tax resident of that country for the relevant period and is eligible to claim treaty protection.

Step 2: Apply for PAN in India

The foreign entity must have a PAN (Permanent Account Number) in India. PAN is mandatory for filing Form 41, creating an income tax login, and filing ITR in India if DTAA benefit is claimed.

Step 3: Create an Income Tax Portal Login

A separate income tax portal login must be created for the foreign company using its PAN. This is a prerequisite for electronic filing of Form 41.

Step 4: Obtain a DSC of the Foreign Authorised Signatory

This is a critical requirement that is often overlooked. The regular DSC (Digital Signature Certificate) of a director or partner does not work. You need a DSC of the authorised foreign signatory, which requires:

• Email and phone OTP from the foreign individual
• Video verification of the foreign individual
• Address proof (driving licence, etc.)
• Photograph
• Copy of passport

Step 5: File Form 41 on the Income Tax Portal

Log in to the income tax portal using the foreign entity's credentials and file Form 41 electronically. The form captures name, status, nationality, tax identification number (TIN) in the country of residence, and the period for which the declaration applies.

Step 6: Prepare a No PE Declaration

Alongside Form 41, the foreign entity must also submit a No PE Declaration, confirming that it does not have a Permanent Establishment in India. See our detailed guide on No PE Declaration for foreign companies.

Step 7: File ITR in India (If DTAA Benefit is Availed)

If the foreign entity avails the benefit of DTAA (instead of paying tax at the Section 115A rate of 20% + surcharge + cess), it must file an Income Tax Return in India. The ITR requires the same DSC of the foreign authorised signatory.

Note: For royalty or FTS, a foreign entity can alternatively choose to pay tax at the Section 115A rate of 20% + surcharge + cess and not file an ITR. However, if it wants the benefit of a lower DTAA rate, ITR filing becomes mandatory.

DTAA Rates: What Rate Applies?

When Form 41 is duly filed along with TRC and No PE Declaration, the DTAA rate applies instead of the Section 115A rate of 20%. Below are the applicable DTAA rates for royalty and FTS for key treaty countries:

Country	DTAA Rate (Royalty/FTS)	Section 115A Rate
UAE	10%	20% + surcharge + cess
Switzerland	10%	20% + surcharge + cess
Sweden	10%	20% + surcharge + cess
Russia	10%	20% + surcharge + cess
China	10%	20% + surcharge + cess
South Korea	10%	20% + surcharge + cess
Italy	20%	20% + surcharge + cess
Denmark	20%	20% + surcharge + cess

For countries like UAE, Switzerland, and Sweden, filing Form 41 correctly can reduce the effective TDS rate from over 20% to just 10%, making compliance not just a legal obligation but a significant financial benefit.

Country-Specific Form 41 Guides

The process for Form 41 (earlier Form 10F) is largely the same across treaty countries, but there are nuances in documentation and TRC format. Refer to the country-specific guides below:

• Form 10F / Form 41 for UAE-India DTAA
• Form 10F / Form 41 for China-India DTAA
• Form 10F / Form 41 for Sweden-India DTAA
• Form 10F / Form 41 for Switzerland-India DTAA
• Form 10F / Form 41 for Russia-India DTAA
• Form 10F / Form 41 for South Korea-India DTAA
• Form 10F / Form 41 for Italy-India DTAA
• Form 10F / Form 41 for Denmark-India DTAA

What Happens if Form 41 is Not Filed?

If the non-resident fails to file Form 41 (or the earlier Form 10F), the Indian payer cannot apply the DTAA rate. TDS must be deducted at the higher Section 115A rate of 20% plus surcharge plus cess. This not only increases the tax cost for the foreign entity but can also create compliance exposure for the Indian company if it applies DTAA rates without the required documentation in place.

Additionally, if the foreign entity later decides to file an ITR in India to claim a refund of excess TDS, it will need all DTAA documents including Form 41, TRC, No PE Declaration, PAN, and DSC of the foreign signatory.

Key Takeaways

• Form 10F has been renumbered as Form 41 under the Direct Tax Code 2025, effective for AY 2026-27 onwards.
• The purpose, eligibility conditions, and required documents remain unchanged.
• Filing Form 41 is mandatory to avail DTAA benefits and apply treaty rates lower than the standard 20% Section 115A rate.
• A DSC of the foreign authorised signatory is required — the regular director/partner DSC does not work.
• If DTAA benefit is availed, ITR filing in India becomes mandatory for the foreign entity.
• For royalty/FTS without DTAA benefit, the foreign entity can pay tax at 20% under Section 115A and is not required to file an ITR.
• All existing Form 10F filings for years up to AY 2025-26 remain valid and do not need to be refiled as Form 41.

How Taxocity Can Help

Taxocity, with more than three decades of experience in Indian tax compliance, offers end-to-end DTAA compliance support for Indian companies making cross-border payments and for foreign entities receiving income from India. Our services cover:

• Obtaining PAN for foreign entities in India
• Creating income tax portal logins for foreign companies
• Facilitating DSC procurement for foreign authorised signatories
• Filing Form 41 (earlier Form 10F) and No PE Declarations
• Filing ITR in India for foreign entities claiming DTAA benefits
• TDS advisory for Indian companies making payments to non-residents

Our team of real human tax experts ensures 100% compliance and guides you through every step, from document collection to portal filing. Rated 4.8/5 by 5,000+ clients, we have been a trusted partner for businesses navigating India's complex cross-border tax landscape.

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Disclaimer: This article is intended for general informational purposes only and does not constitute tax advice. The information provided is based on applicable Indian tax laws and the Direct Tax Code 2025 as understood at the time of writing. Laws and regulations may change, and individual circumstances vary. Please consult a qualified tax advisor before making any decisions based on this content.