Is a Tax Residency Certificate Mandatory Every Year?

One thing that confused me was the Form 10F reference.

For older tax years, you will see a lot of information saying that an NRI needs a TRC plus Form 10F to claim treaty benefits.

For tax years beginning on or after April 1, 2026, the Income-tax Rules, 2026 changed the numbering. The Income Tax Department's current guidance identifies Form 41 as the corresponding form for information required from non-residents under section 159(8).

The Department's guidance says Form 41 is a self-declaration for non-resident taxpayers seeking DTAA benefits and that it is required when treaty benefits are claimed. It also states that, where an ITR is filed, it is required for processing the DTAA claim and is filed once in a tax year.

So if you're researching this in 2026, be careful with articles that only mention the old Form 10F rules.

For your original question, I'd focus on the period covered by your TRC rather than simply asking whether a TRC is “annual.”

I’m in the UK and had to provide a new residency document when dealing with Indian income.

In my case, the issue wasn't that my tax residence had changed. The institution simply wanted evidence covering the relevant period.

I think that's the main distinction.

A TRC isn't necessarily “mandatory every calendar year” in the sense that every person must automatically obtain one on January 1. What matters is whether you need to establish tax residence for a particular period or claim a treaty benefit and whether the certificate you already have covers that period.

The validity period on the certificate is therefore important.

If your UAE certificate explicitly covers the relevant tax year, it may be different from a certificate that only covers an earlier period.

Also, the payer or bank may have its own documentation requirements before applying a lower withholding rate. So even if you believe your previous certificate should technically cover the period, they may ask for current documentation.

I'd ask them exactly which tax year and DTAA claim they are asking you to support.

I had almost the same issue with an NRI bank account.

My previous TRC was for an earlier tax year, and when I tried to use the same certificate for the following year, the bank asked me for an updated document.

I initially thought that was unnecessary because my country of tax residence hadn't changed. But the important point seems to be that a TRC is evidence of tax residency for a particular period, rather than a permanent certificate saying that you will always be tax resident in that country.

The certificate itself usually specifies the period for which the foreign tax authority considers you resident.

So if you're claiming a DTAA benefit for a different tax year, I wouldn't assume that an old TRC automatically covers it.

Also, don't confuse the TRC with the additional information required by India for a DTAA claim. They serve different purposes.

The rules have changed in 2026, so I'd definitely check the current Income Tax Department guidance rather than relying on an old Form 10F article.