12 Jun All You Need to Know About Form 67 for Foreign Tax Credit
Filing Form 67 is mandatory to claim foreign tax credit under DTAA while filing your Income Tax returns. If you are resident Indian and earning income abroad, you might face the issue of double taxation—paying tax in both countries on the same income. This is where Form 67 comes into play.
✅ What is Form 67?
Form 67 allows taxpayers to claim credit for taxes paid in a foreign country, ensuring the same income isn’t taxed twice.
Filing Form 67 is mandatory to claim foreign tax credit under DTAA while filing your Income Tax Return (ITR) in India.
🧭 Who Should File Form 67?
Resident Indians earning foreign income (salary, capital gains, interest, dividends, etc.)
Anyone who has paid foreign tax on income that is also taxable in India
NRIs (Non-Resident Indians) are not required to file Form 67 for income that is not taxable in India. If the foreign income is outside the scope of Indian taxation (as in most NRI cases), Form 67 is not applicable.
🌍 Why is Form 67 Important?
✅ To Avoid Double Taxation: Ensures you don’t pay tax twice on the same income
✅ Claim Foreign Tax Credit: Get credit for foreign taxes paid against Indian tax liability
✅ Mandatory for DTAA Benefits: You cannot claim FTC without filing Form 67
🗓️ When to File Form 67?
Form 67 must be filed on or before the date of filing your ITR for the relevant assessment year.
🚫 If you file Form 67 after filing your return, your FTC claim may be disallowed.
📋 What Details Are Required?
- PAN, Name, Contact Info.
- Country of income source.
- Nature and amount of income earned abroad.
- Foreign tax paid (date, amount, currency)
- Relief claimed under the applicable DTAA
🌐 Common Scenarios Where Form 67 is Required
- Resident Indians earning income from outside India and taxed on global income in India.
- RNORs receiving foreign capital gains, dividends, or salary.
- Freelancers and consultants with clients overseas
- Residents with rental income or investments in foreign countries.
📝 Important Points to Remember
- Form 67 is mandatory to claim foreign tax credit in India.
- Always file it before or along with your ITR.
- Maintain proper proof of foreign taxes paid.
- Read the specific DTAA provisions between India and the foreign country.