How to File Form 67 for Foreign Tax Credit Claim
- Rajesh Kumar Kar
- Nov 27, 2025
- 8 min read
Form 67 is a mandatory declaration for Indian residents claiming Foreign Tax Credit (FTC) under the Income Tax Act, 1961. It allows taxpayers to avoid double taxation by offsetting tax paid abroad against the tax payable in India on the same income. To secure this benefit, the form must be submitted electronically before filing the Income Tax Return (ITR). The process ensures that international income, such as salary, dividends, or capital gains earned overseas, is taxed fairly without duplication.
Table of Contents
Understanding Form 67 and Its Purpose
Form 67 is a mandatory form prescribed by the Income Tax Department for Indian residents and non-residents who wish to claim Foreign Tax Credit (FTC) under Section 90, 90A, or 91 of the Income Tax Act. Its purpose is to ensure that taxpayers do not pay double taxes on the same income earned in a foreign country. When an individual earns income abroad and pays tax there, they can claim a credit for that tax against their Indian tax liability by submitting Form 67. The form acts as an official declaration and record of taxes paid overseas and helps the Income Tax Department verify the legitimacy and computation of the claim.
Eligibility for Claiming Foreign Tax Credit through Form 67
Only taxpayers who have paid income tax in a foreign country and have the right to claim relief under a Double Taxation Avoidance Agreement (DTAA) or under Section 91 (if no DTAA exists) are eligible to file Form 67. The taxpayer must be a resident of India in the financial year for which the credit is being claimed. Salaried individuals, freelancers, professionals, or business owners earning income abroad can all use Form 67, provided the tax paid outside India pertains to income also taxable in India. The claim is not available for taxes paid on exempt income or for indirect taxes like VAT or social security contributions.
Filing Timeline and Deadlines for Form 67
Form 67 must be filed on or before the due date of filing the Income Tax Return (ITR) for the respective financial year under Section 139(1). Previously, delayed submissions often resulted in denial of FTC claims; however, several ITAT rulings have since clarified that minor delays, if reasonably explained, may not lead to rejection. Still, it is strongly recommended to submit the form before or along with the ITR filing to ensure smooth processing and avoid scrutiny.
Step-by-Step Process: How to File Form 67 Online
Visit the official Income Tax e-filing portal and log in using your PAN and password.
Navigate to the “e-File” section and select “Income Tax Forms.”
Choose “Form 67” from the list and select the relevant assessment year.
Enter details of the foreign income, country, tax identification number (TIN), and tax paid abroad.
Upload supporting documents such as tax payment proofs or Form 16 from the foreign employer.
Verify the form using Aadhaar OTP or digital signature and submit.
Once submitted, download the acknowledgment receipt for your records.
This online process ensures accuracy and convenience, allowing seamless integration with your ITR filing process.
Documents Required for Filing Form 67
To claim FTC, the taxpayer must keep the following documents ready:
Proof of foreign income (salary slips, invoices, or statements)
Tax payment certificate or proof of tax deducted/paid abroad
Copy of the foreign tax return filed (if available)
Details of the DTAA article under which relief is claimed
Conversion rate used for foreign currency to INR
Form 16 or 16A (if applicable) for Indian income
All documents must be self-attested and retained for verification, though they are not always required to be physically submitted.
Computation of Foreign Tax Credit (FTC)
The amount of credit that can be claimed under FTC is limited to the lower of the foreign tax paid or the Indian tax payable on that same income. For example, if a taxpayer paid $1,000 as tax in the U.S. and the Indian equivalent tax on that income is ₹60,000, the credit allowed will be restricted to ₹60,000, even if the foreign tax was higher. The computation should be done separately for each source of income and each country. The FTC is adjusted while determining the final tax liability after applying other deductions and rebates under Indian tax laws.
Common Mistakes to Avoid When Filing Form 67
Missing the deadline or filing after submitting the ITR.
Entering incorrect foreign income or currency conversion rates.
Claiming FTC for non-taxable or exempt income.
Forgetting to upload the foreign tax payment certificate.
Claiming benefits under a DTAA without checking eligibility conditions.
Ensuring accuracy in all details avoids notices and prevents rejection of the claim by the Income Tax Department.
Legal and Procedural Clarifications from ITAT on Delayed Filing
Several Income Tax Appellate Tribunal (ITAT) judgments have clarified that filing Form 67 after the ITR due date does not automatically invalidate the FTC claim. Tribunals in cases such as Brinda Rama Krishna vs. ITO (2022) and Ms. Sonakshi Sinha vs. ACIT (2023) held that Form 67 is procedural and that genuine delays should not result in denial of credit. However, it remains advisable to adhere to timelines to avoid unnecessary correspondence and scrutiny.
Is Foreign Tax Credit Allowed under the New Tax Regime?
Yes, Foreign Tax Credit can be claimed under both the old and new tax regimes, as it pertains to taxes already paid on foreign income. However, certain deductions or exemptions available in the old regime may not apply in the new one, which could affect the total taxable amount and the credit calculation. Taxpayers should compare total liabilities under both regimes before choosing one during ITR filing.
How Platforms like TaxBuddy Simplify Form 67 Filing
Filing Form 67 can be complex due to multiple data points like DTAA interpretation, currency conversion, and computation of FTC. Platforms like TaxBuddy simplify the process by automating calculations, validating income data, and ensuring accurate claim submissions. With expert-assisted filing, users can avoid missed claims, late submissions, or errors in credit computation. The system also ensures that all required proofs are attached properly before final submission.
Conclusion
Form 67 serves as an essential compliance tool for taxpayers earning foreign income and paying taxes abroad. It ensures they receive due credit and avoid double taxation while remaining compliant with Indian tax laws. Timely and accurate submission backed by valid documentation helps secure full Foreign Tax Credit and prevents disputes during assessments.
For anyone looking for assistance in tax filing or to claim FTC smoothly, it is recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free filing experience.
FAQs
Q1. What is the purpose of Form 67? Form 67 is used to claim Foreign Tax Credit (FTC) under Indian income tax laws when a taxpayer has paid tax in a foreign country on income that is also taxable in India. This ensures that the same income is not taxed twice and helps taxpayers get credit for the taxes already paid abroad. It serves as an official declaration to the Income Tax Department that the taxpayer has complied with foreign tax laws and is eligible for relief under Double Taxation Avoidance Agreements (DTAA) or Section 91 of the Income Tax Act.
Q2. Who is required to file Form 67? Any resident taxpayer in India who earns income from a foreign source and pays tax on that income in the respective foreign country must file Form 67 before filing their Indian Income Tax Return (ITR). This applies to salaried employees working abroad, freelancers, consultants, companies, or any individual who earns global income taxable in both jurisdictions. Filing Form 67 is a mandatory condition for claiming relief under DTAA or Section 91.
Q3. What happens if Form 67 is filed late? If Form 67 is filed after submitting the ITR, the taxpayer may lose the right to claim Foreign Tax Credit for that financial year. The Income Tax Department typically disallows delayed FTC claims. However, certain rulings by the Income Tax Appellate Tribunal (ITAT) have permitted delayed filings in genuine hardship cases. Despite that, taxpayers are advised to file Form 67 on or before the due date of their ITR to ensure the claim is valid and processed without dispute.
Q4. Can Form 67 be filed offline? No, Form 67 can only be filed online through the Income Tax Department’s e-filing portal. The taxpayer must log in using their credentials, navigate to the “e-File” section, and select “Form 67” from the list of available forms. After entering the necessary details, the form must be digitally signed using an Aadhaar OTP or Digital Signature Certificate (DSC). Offline submission is not permitted, as the process requires verification and cross-linking with the taxpayer’s ITR data.
Q5. Are companies eligible to file Form 67? Yes, both individuals and entities—including companies, partnership firms, and LLPs—can file Form 67 if they have paid taxes abroad on income also taxable in India. Companies often use this form to claim relief for withholding taxes paid on dividends, royalties, or technical service fees received from foreign clients. The credit is adjusted against their total Indian tax liability, ensuring fair taxation of international income.
Q6. What is the time limit to claim FTC? Form 67 must be submitted on or before the due date for filing the Income Tax Return as specified under Section 139(1) of the Income Tax Act. Missing this deadline can lead to rejection of the FTC claim. The FTC amount is calculated in the same financial year in which the income was earned and tax was paid abroad. Timely filing also ensures smooth verification and prevents delays in refund processing or assessment.
Q7. Can FTC be claimed if income is exempt in India? No, if the foreign income is exempt from taxation under Indian law, the taxpayer cannot claim credit for taxes paid abroad on that income. FTC is applicable only when the same income is taxable in both India and the foreign country. For example, if dividends from a foreign company are exempt in India under specific provisions, no credit can be claimed for the tax paid on that income overseas.
Q8. What if no DTAA exists with the foreign country? If India does not have a Double Taxation Avoidance Agreement with the foreign country where the tax was paid, the taxpayer can still claim relief under Section 91 of the Income Tax Act. This provision offers unilateral relief to avoid double taxation even without a treaty. The credit is limited to the lower of the tax paid in the foreign country or the tax payable in India on the same income.
Q9. Is Form 67 applicable for freelancers earning overseas income? Yes, freelancers, consultants, and self-employed professionals receiving income from clients based abroad and paying tax in those jurisdictions can file Form 67 to claim Foreign Tax Credit. For example, an Indian freelancer providing services to a U.S.-based company can claim FTC for the TDS deducted in the U.S., provided the same income is offered to tax in India. Filing Form 67 ensures that double taxation does not occur on such global income.
Q10. What are the common errors in filing Form 67? The most frequent mistakes include incorrect currency conversion of foreign income, failure to upload foreign tax payment proofs, or filing Form 67 after submitting the ITR. Some taxpayers also misreport the financial year or omit income details, leading to mismatches with the ITR data. These errors can result in rejection of FTC claims or delays in assessment. It is crucial to verify all amounts and attach accurate supporting documents before submission.
Q11. Can TaxBuddy help with Form 67 filing? Yes, TaxBuddy offers complete assistance for filing Form 67 accurately and within deadlines. The platform’s AI-driven interface helps calculate eligible FTC, verifies DTAA applicability, and ensures all required proofs—such as tax payment receipts and foreign income statements—are uploaded correctly. TaxBuddy’s tax experts also cross-check the data before ITR submission to make sure all international tax credits are properly reflected and accepted by the Income Tax Department.
Q12. What happens if Form 67 is not filed at all? If Form 67 is not filed, the taxpayer forfeits the right to claim Foreign Tax Credit. As a result, they may end up paying tax twice on the same income—once in the foreign country and again in India. This increases the overall tax liability and reduces post-tax income. Filing Form 67 is the only way to legally offset foreign taxes against Indian tax obligations and avoid double taxation. Using reliable platforms like TaxBuddy helps ensure such compliance is never missed.
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