TRC so obtained can be submitted to the below authorities:
1: Submit to the payer of Income:
The Individual may consider submitting
the copy of TRC to payer of the income, thereby ensuring that such payer
withholds taxes at such concessional rates or at zero rate as per the
benefit/relief mentioned in the DTAA with respective country.
For eg: Continuing the above example if
TRC is submitted to the bank in India, the said bank will withhold taxes at
concessional rate of 15% as mentioned in DTAA between India and USA instead of
withholding the taxes at highest rate of 30% as mentioned under the provisions
of the Act.
2: Submit to Income Tax Department at the time of filing of Tax returns
case, if TRC is not submitted and tax is not withheld at concessional rates or
at zero rate as per the benefit/relief mentioned in the DTAA with respective
country, then NRI may avail benefit of DTAA while filing his tax return and
claim any refund of excess tax withheld, which is at the discretion of the
Income Tax Department and involves time lag in receipt of said refund.