All You Need to Know About Form 67 for Foreign Tax Credit

Sachin Jain — Thu, 12 Jun 2025 07:44:37 +0000

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.

Need help with taxation or investments? Talk to WealthSane—your trusted financial partner.

Paying Rent Above ₹50,000? Know Your TDS Deduction & Form 26QC Rules

Sachin Jain — Mon, 21 Apr 2025 10:40:34 +0000

Are you an individual paying monthly rent above ₹50,000? Whether you’re a salaried employee, freelancer, or running a small business—you are required to deduct 2% TDS on your rent under Section 194-IB of the Income Tax Act.

What is Section 194-IB?

Introduced in 2017, Section 194-IB mandates that:

If any individual or HUF (not liable to audit under Section 44AB)
Pays monthly rent exceeding ₹50,000
To a resident landlord

Then, the tenant must:

Deduct 2% TDS on the total rent amount
Deposit the TDS using Form 26QC
Issue Form 16C (TDS certificate) to the landlord

When to Deduct TDS?

There are two ways to comply:

Monthly Deduction & Filing

Deduct 2% TDS every month
File Form 26QC every month

Annual Deduction & Filing (Simplified Option)

Deduct the entire 2% TDS on total rent in March
File Form 26QC once by 30th April

This second option is ideal for salaried individuals and others who prefer simpler annual compliance.

What If You Don’t Deduct TDS?

If you fail to deduct or deposit TDS:

You may receive an income tax notice
Be liable to pay interest, late fees, and penalties
Your landlord may face issues in their ITR

It’s a small step that can help avoid big trouble.

Common Myths

“I’m not claiming HRA, so this doesn’t apply to me.”
Wrong! This rule applies regardless of HRA. Even if you don’t claim HRA in your ITR, you still need to deduct TDS if your rent is over ₹50,000.

“Only landlords need to worry about TDS.”
Wrong again. Tenants are responsible for deducting and filing TDS under Section 194-IB.

Quick Checklist for Tenants

Paying rent above ₹50,000/month?
Deduct 5% TDS once in March
File Form 26QC by 30th April
Download & issue Form 16C to landlord
Ensure it reflects in your ITR filing

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