Mandatory online statement under Rule 128 of the Income-tax Rules required to claim Foreign Tax Credit (FTC) for taxes paid overseas on foreign salaries, dividends, and capital gains
If you received US dividends or sold RSUs where US tax was withheld, you cannot claim FTC in Schedule TR and FSI of your ITR unless Form 67 is filed with proof of foreign tax paid.
đĄ Form 67 is a mandatory digital declaration filed by Indian tax residents under Rule 128 to claim Foreign Tax Credit (FTC). Under Double Taxation Avoidance Agreements (DTAA) or unilateral relief under Section 91, taxes paid in foreign countries (such as US 25% dividend withholding tax or UK PAYE deductions) can be deducted from your Indian tax payable on that same foreign income. Form 67 must be submitted on or before the end of the relevant assessment year; otherwise, the tax credit is forfeited.
Form 67 accommodates relief whether India has a formal tax treaty with the country or not.
| Parameter | Section 90 / 90A (Bilateral Treaty) | Section 91 (Unilateral Relief) | |
|---|---|---|---|
| Applicability | Countries with which India has signed a DTAA (e.g., USA, UK, Canada, Germany, Singapore, UAE) | Countries with which India has NO Double Taxation Avoidance Agreement | Relief method depends on treaty provisions |
| Credit Calculation Basis | Lower of Indian tax or Foreign tax paid as prescribed in the specific DTAA Article | Indian rate of tax or foreign rate of tax, whichever is lower | Calculated on a country-by-country basis |
| Required Form 67 Reporting | Specify Country Code, DTAA Article number, and attach Form 1042-S / P60 | Specify Country Code, select 'Section 91' in dropdown, and attach foreign tax proof | Taxpayer must be a resident of India in that previous year |
Instant online submission with electronic acknowledgment receipt generated immediately.
100% Free of cost on the Income Tax e-Filing portal.
Any individual, HUF, or domestic company that is a 'Resident and Ordinarily Resident' (ROR) in India during the financial year and has derived taxable income from foreign jurisdictions on which foreign tax has been deducted or paid.
Resident Indian taxpayers (including tech professionals receiving foreign employee stock options - RSUs/ESOPs, freelancers working for overseas clients, investors holding US stocks/ETFs, and expats returning to India) who have paid income tax in a foreign country and wish to claim a credit against their Indian income tax liability to avoid double taxation.
Visit incometax.gov.in, log in with your PAN and password, and verify via two-factor OTP.
Navigate to 'e-File' â 'Income Tax Forms' â 'File Income Tax Forms'. Select 'Persons with Business/Professional Income' or search for 'Form 67' and click 'File Now'.
Choose the Assessment Year corresponding to the financial year of foreign income (e.g., AY 2026-27 for FY 2025-26) and select the filing type as 'Original' or 'Revised'.
Select the foreign Country Code, specify the DTAA Article, and enter the income under the respective head (Salary, House Property, Capital Gains, or Other Sources). Enter the foreign tax paid in both foreign currency and converted INR using the SBI TT buying rate.
Disclose any refund of foreign tax or disputes. Upload PDF copies of foreign tax withholding certificates (e.g., Form 1042-S) and foreign tax payment slips (under 5 MB).
Verify the statement using Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC) and submit. Note the 15-digit acknowledgment number.
Under amended Rule 128(9), the CBDT relaxed the filing timeline:
Form 67 must be furnished on or before the end of the Assessment Year relevant to the previous year in which the income was offered to tax, or on or before the due date for filing an updated return under Section 139(8A).
If foreign tax assessments are updated overseas or an error was made in original filing, log in to the portal, choose 'Filing Type: Revised', enter the original acknowledgment number, update figures, and re-verify.
The Foreign Tax Credit allowed in India is strictly the lower of two values calculated separately for each foreign income stream:
Convert foreign taxes paid into INR using the SBI TT buying rate on the last day of the month preceding the month in which income was paid or tax was deducted.
Calculate the Indian income tax payable proportionately on that specific foreign income at your applicable domestic slab rate.
Under Rule 128(4), FTC = Minimum of [Foreign Tax Paid] OR [Indian Tax Payable on such income]. Excess foreign tax paid cannot be refunded by the Indian government and cannot be carried forward to future years.
Practical fixes for common errors encountered during Form 67 online filing.
| Problem | Probable Root Cause | Recommended Resolution |
|---|---|---|
| Cannot find SBI TT Buying Rate for currency | State Bank of India Forex Card / Daily Rates archive | Obtain historical TT Buying Rates directly from SBI Treasury branch notices or licensed financial data platforms like Bloomberg/RBI archive on the last day of the preceding month. |
| Foreign tax proof is in a foreign language (German/Japanese) | Rule 128 documentation norms | Attach the original document along with an English translation certified by a certified translator or chartered accountant. |
| CPC disallowed FTC in Section 143(1) intimation | Check date of Form 67 filing vs ITR processing date | File a rectification request under Section 154 on the e-Filing portal selecting 'Reprocess Return' and attaching the Form 67 acknowledgment receipt. |
| Attachment upload fails on portal | File size and format restrictions | Ensure all proof files are in PDF format, scanned in greyscale at 150-200 DPI, without password protection, and strictly under 5 MB per file. |
Under the India-US DTAA (Article 10), the agreed withholding tax rate on dividends is 25%. If your effective Indian tax slab is 30%, you will pay only the differential 5% tax in India by claiming full 25% credit in Form 67. If your Indian slab rate is only 10% or 20%, your FTC is capped at your Indian tax payable (10% or 20%).
No. If your total income (including foreign income) is below the basic tax exemption limit, your Indian tax liability is already zero, so there is no Indian tax to offset and Form 67 is not required. However, you cannot claim a cash refund of the foreign tax from the Indian government.
Under amended Rule 128(9), taxpayers are legally permitted to file Form 67 on or before the end of the Assessment Year (i.e., by December 31 or March 31). As long as it is filed before the return is processed or within the AY, the credit will be admitted.
Yes. If an overseas client in the US, UK, or Australia deducted tax (withholding tax) before wiring professional fees to your Indian bank account, you can claim that tax credit under Section 90 by filing Form 67 with the client's tax deduction certificate.
Taxpayers having foreign source income or claiming FTC cannot file ITR-1 (Sahaj) or ITR-4 (Sugam). They must compulsorily file ITR-2 (for salaried/capital gains) or ITR-3 (for business/profession), completing Schedule FSI, Schedule TR, and Schedule FA (Foreign Assets).
Statutory rules establishing eligibility, conversion rates, and documentation requirements for claiming FTC.
Checked on November 4, 2026
View Reference Document âStatutory provisions governing bilateral tax relief under DTAAs and unilateral relief in absence of agreements.
Checked on November 4, 2026
View Reference Document âHow to file your ITR on the e-Filing portal: choosing ITR-1, ITR-2, ITR-3 or ITR-4, AY 2026-27 due dates (including the extension for audit cases), belated, revised and updated returns, the 30-day e-verification rule, and downloading the ITR-V acknowledgement.
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Mandated under Rule 128 of the Income-tax Rules, 1962 to claim relief under Section 90, 90A, or 91 of the Income-tax Act, 1961. Must be submitted electronically through incometax.gov.in.
File Form 67 on Income Tax e-Filing Portal â