What Mistakes Cause DTAA Claims to Be Rejected?

I would check the paperwork submitted to the bank, tenant, company, or other payer as well. Sometimes the tax residency documents are correct, but the payer has incomplete information or has already deducted tax before receiving them.

Common issues to review include:

• A TRC that does not cover the relevant period.
• Form 10F details that are incomplete or inconsistent.
• A missing tax identification number or incorrect overseas address.
• Choosing a treaty article that does not apply to the income.
• Claiming a rate without meeting the treaty's conditions.
• Reporting income or tax deducted differently from the supporting documents.
• Missing proof of foreign tax paid when seeking foreign tax credit.

It is also important to distinguish between a claim being rejected and a claim being delayed for clarification. A mismatch may lead to a request for additional evidence rather than an immediate final rejection.

If tax has already been deducted, ask the payer what documentation they require and whether a correction is possible under the applicable process. If you are filing a return or seeking a refund, check the current filing instructions and deadlines.

I would not use another person's successful claim as proof that the same rate or treatment applies to you. Treaty terms and the facts of each case can differ.

A mistake that can create confusion is mixing up a DTAA benefit with a foreign tax credit.

They are related to double taxation, but they are not always the same claim. For example, someone receiving income from India may ask a payer to apply a treaty rate where the relevant conditions are met. Someone who is an Indian tax resident and has paid tax abroad may instead need to consider foreign tax credit rules while filing an Indian return.

The paperwork and filing requirements can differ. Under the Indian foreign tax credit process, Form 67 and evidence of foreign tax paid or deducted have been relevant requirements under the earlier framework. Because Indian tax forms and rules changed for 2026, check the current form names and instructions for the tax year concerned rather than relying on an old checklist.

I would also reconcile the income amount, tax withheld, dates, and currency conversion details against the supporting certificates. If the foreign tax is disputed, or if the same tax is claimed twice, that can create problems.

My suggestion is to identify exactly what you are claiming first, then prepare the documents for that specific claim. A refund is not automatic just because tax was deducted at a higher rate.

One of the first things I would check is whether the Tax Residency Certificate actually covers the period for which the DTAA benefit is being claimed.

It is easy to focus on getting the certificate but overlook its validity dates or the country in which tax residency is being established. The details should be consistent with the claim and the relevant treaty.

Another point is Form 10F. Depending on the applicable requirements, it may need information such as your tax identification number, residential status, nationality or country of incorporation, and overseas address for the relevant period. Missing information or differences between documents can lead to questions or delays.

I would also avoid assuming that every type of income receives the same treaty benefit. Interest, dividends, salary, royalties, rent, and capital gains can be covered by different treaty provisions. The correct article and conditions matter.

Finally, keep supporting evidence together. A TRC alone may not settle every question about eligibility or the nature of the income. Check the official Income Tax Department guidance and the specific treaty before submitting your claim.