Form 43 Tax Residency Certificate under Section 159 – Detailed Practical Overview

Form 43 is the central document for obtaining a Tax Residency Certificate (TRC) from the Indian Income-tax Department under the Income Tax Act, 2025. This certificate is indispensable for an assessee seeking to claim benefits under Double Taxation Avoidance Agreements (DTAA) in other countries or specified territories.

Unlike most income-tax forms, Form 43 is not a form that the assessee submits. Instead, it is a certificate generated by the Department and issued by the Assessing Officer after the assessee files an application in Form 42 along with prescribed supporting documents.

This guide explains in simple, practical terms:

  • What Form 43 is and its legal basis
  • How it links with Section 159 and DTAA claims
  • The relationship between earlier Form 10FB and new Form 43
  • Who needs it and when
  • How many times it can be issued
  • The process of obtaining it via Form 42
  • How it is delivered through the e-filing portal
  • Key structural and system-level changes introduced in the new regime

1.1 Statutory Basis for Form 43

Form 43 has been prescribed as the Certificate of Residence for the purposes of section 159 of the Income Tax Act, 2025. The relevant legal linkages are:

  • Under the old regime:

    • Name of form under I.T. Rules, 1962: Form 10FB
    • Corresponding sections: Section 90 and Section 90A of the Income Tax Act, 1961
    • Corresponding rule: Rule 21AB of the I.T. Rules, 1962

  • Under the new regime (Income Tax Act, 2025 and new Rules):

    • Name of form under I.T. Rules, 2026: Form 43
    • Corresponding sections: Section 159(1) and Section 159(2) of the Income Tax Act, 2025
    • Corresponding rule: Rule 75(4) of the I.T. Rules, 2026

Note: All statutory references such as Section 159, Section 90, Section 90A, Rule 21AB and Rule 75(4) must be read exactly as enacted, as they define the legal scope and validity of Form 43.

1.2 Nature and Purpose of Form 43

Form 43 serves as a Tax Residency Certificate issued by the Assessing Officer. Through this certificate, the Department formally confirms that:

  • A specified assessee (individual, company, firm, LLP, trust, or other entity)
  • Is a resident of India
  • For a clearly defined period,
  • For the purposes of claiming relief or benefits under applicable Double Taxation Avoidance Agreements (DTAA) in other jurisdictions.

In practice, foreign tax authorities and payers of overseas income often insist on an officially issued TRC from the assessee’s home country. Form 43 fulfils this requirement for Indian residents.

2. What Exactly Is Form 43? (Aligned with FAQs)

2.1 Definition of Form 43

Form 43 is the Tax Residency Certificate (TRC) issued by the Assessing Officer of the Indian Income-tax Department under section 159 read with Rule 75(4). It certifies that the concerned person is a resident in India for the specified period, thereby enabling the assessee to:

  • Claim DTAA benefits in the foreign country or territory; and
  • Avoid or reduce double taxation on the same income.

2.2 Who Uses Form 43 and Who Files It?

  • Form 43 is not filed by the assessee.
  • The assessee’s role is to:
    1. Submit Form 42 to the Income-tax Department; and
    2. Attach all documents required in Form 42 and any additional papers sought by the Assessing Officer.

On the basis of this application, the Assessing Officer may issue Form 43 as the Certificate of Residence.