Tax Residency Certificate essential for availing lower tax under DTAA
The Economic Times reports that a Tax Residency Certificate is mandatory for claiming lower tax rates under Double Taxation Avoidance Agreements. This certificate, issued by the taxpayer's home country, verifies their residency status for tax purposes. Individuals and companies must obtain and present this TRC to tax authorities in the foreign country where they earn income. Without this document, they cannot avail the reduced tax rates provided by the DTAA.
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