If you live in one country but earn money from another, you might have to pay tax in both places — which means paying tax twice on the same income. To help with this, the Indian government lets you get credit for the tax you already paid in the other country. But to get this benefit, you need to fill out a form called Form 67. It’s a required form under Indian income tax rules.
You should submit Form 67 before filing your tax return to make sure everything is correct. You also need to file it if you’re getting a refund of foreign tax from earlier years or if you’re using current year losses to adjust past income.
This blog will explain everything you need to know about Form 67 — in a simple way!
What is Form 67 ?
Form 67 is a statement that needs to be filed by Indian residents who have foreign income or assets. If an individual has paid taxes outside India then filing Form 67 will help to claim credit for such foreign tax paid.
As we file annual income tax returns, same way Form 67 is also an annual form. Form 67 needs to submitted before filing the income tax return of the said year.
Is it mandatory to file Form 67 ?
Yes, Form 67 is mandatory for claiming a foreign tax credit in India. If you’re an Indian resident with foreign income and have paid taxes in a foreign country, filing Form 67 is necessary to claim a credit for those taxes against your Indian tax liability.
What if I don’t file Form 67 ?
Failure to file Form-67 may result in losing the opportunity to claim a foreign tax credit.
Without a foreign tax credit, you may be subject to double taxation on the same income.
Failure to file Form-67 can result in penalties and fines.
What is the Concept of FTC in India?
As per Indian tax rules, Sections 90 and 91 help you claim a credit for taxes you paid in another country.
- Section 90 applies when India has a tax agreement (DTAA) with that country.
- Section 91 applies when there’s no agreement between India and that country.
So, if you live in India but earned income abroad and paid tax there, you can claim a credit for that foreign tax against your Indian tax. This way, you won’t have to pay tax twice on the same income.
Documents Needed for Form 67
How to File Form 67 Electronically ?
Form-67 can be electronically filed and submitted through the income tax portal.
To file Form-67 below steps can be followed :
1.Log in to the income tax portal using your credentials.
2.Go to the “e-file” section and select Income Tax Forms > File Income Tax Form.
3.Select Double Taxation Relief from > File Income Tax Forms
4.Select the ‘Assessment Year (AY)’ and click ‘Continue’.
5.Fill the Form 67 with the required information and details.
6.Before submitting the Form 67, attach a certificate of foreign tax paid or deducted.
7.If required, you can also attach other supporting documents, such as proof of foreign income.
8.Submit Form 67 electronically through the income tax portal.
9.An acknowledgement will be generated as a receipt after successful submission of Form 67.
What is the due date for filing Form 67?
The Income Tax Department now says that you can file Form 67 anytime before the end of the assessment year, as long as you have filed your ITR (tax return) on time — either under the regular deadline (Section 139(1)) or the late return deadline (Section 139(4)).
If you’re filing an updated return (under Section 139(8A)), then you must also file Form-67 before you submit that updated return.
But if you are claiming tax relief under Section 90 (when India has a tax agreement with the other country), then Form-67 must be filed before the assessment year ends.
👉 If you file Form 67 late (after the year ends), you won’t get the benefit of foreign tax credit.
What are the important considerations I should keep in mind for Form 67 ?
Ensure you file Form-67 within the specified time limit to avoid any penalties or consequence.
By filing Form 67 accurately and on time helps to follow compliance with Indian tax laws and regulations.
Consult a tax professional to get correct advice on filing Form-67.
What is Double Taxation Avoidance Agreement (DTAA) ?
The Double Taxation Avoidance Agreement (DTAA) is an agreement between India and another country to avoid taxing the same income in both countries. The agreement helps prevent double taxation and fiscal evasion.
DTAA allows tax credits in one country for taxes paid in the other country. DTAA may exempt certain types of income from taxation in one or both countries. DTAA provides clarity on tax treatment of various types of income, such as dividends, interest, and royalties.
How DTAA Works ?
To claim DTAA benefits, you must be a resident of India and have income taxable in a foreign country with which India has a DTAA.
You can claim a foreign tax credit in India for taxes paid in the foreign country.
Is DTAA and Form-67 Interrelated ?
Form 67 plays a crucial role in claiming DTAA benefits.
To avail DTAA benefits, Form-67 requires you to provide details of foreign income and tax paid, which helps in calculating the foreign tax credit.
What is DTAA Relief under Section 90 ?
Section 90 of the Income-tax Act, 1961, allows India to enter into Double Taxation Avoidance Agreements (DTAAs) with other countries.
Section 90 benefits by providing relief from double taxation by allowing tax credits or exemptions.
Section 90 helps avoid double taxation, reduces the tax burden, promotes cross-border trade and investment. It provides clarity on tax treatment.
How to check whether DTAA exists between India and another country ?
Go to the official website of the Income Tax Department of India and check for DTAA tax treaty. By visiting the income tax website you can look for the section on DTAA or international taxation.
You can also check the list of countries with which India has signed a DTAA.
You can Check and Refer the DTAA Text, this Text/Agreement helps understand the terms and conditions of the DTAA agreement.
Are there any Additional Resources to refer for DTAA ?
You can check the website of the Central Board of Direct Taxes (CBDT) for information on DTAA.
You can also utilize the international taxation resources, such as the OECD website, to understand DTAA concepts and agreements.
What are the important considerations I should keep in mind for DTAA ?
Ensure compliance with tax laws and regulations in both countries.
Consult a tax professional to get correct advice on DTAA benefits and compliance.
Form-67 FAQ
1. What is Form 67?
Form-67 is a document you need to file with the Income Tax Department of India to claim Foreign Tax Credit (FTC) if you’ve paid taxes in another country.
2. Who should file Form-67?
Any resident taxpayer in India who has earned foreign income and paid tax on it outside India should file Form 67 to avoid paying tax twice.
3. Why is Form-67 important?
It helps you claim credit for foreign taxes paid so you don’t end up paying tax twice on the same income — once abroad and once in India.
4. When should I file Form-67?
Form-67 should be submitted before filing your Income Tax Return (ITR) — ideally on or before July 31st (unless extended).
5. Is Form 67 mandatory for claiming Foreign Tax Credit?
Yes, it is mandatory if you want to claim FTC under Section 90 or 91 of the Income Tax Act.
6. What documents are needed to file Form 67?
You’ll need:
A. Foreign tax payment proof or tax certificate
B.Income details from abroad
C.Passport/Visa (if NRI)
D.ITR details
E.Currency conversion info
7. Where can I file Form 67?
Form 67 must be filed online on the Income Tax e-Filing portal: https://incometax.gov.in
8. Can I revise Form 67 after submitting?
As of now, there is no official option to revise Form 67 once submitted. Make sure all details are accurate before filing.
9. What if I forget to file Form 67?
You may lose the benefit of Foreign Tax Credit, and end up paying higher tax in India. So it’s important not to miss it.
10. Do NRIs need to file Form 67?
Only Resident Indians (not NRIs) need to file Form 67. NRIs are taxed only on income earned or received in India.
