The Central Government today prescribed the procedure to be followed to furnish form 67 to claim foreign tax credit under the provisions of the Income Tax Act, 1961.
A foreign tax credit (FTC) is generally offered by income tax systems that tax residents on worldwide income, to mitigate the potential for double taxation. The credit may also be granted in those systems taxing residents on income that may have been taxed in another jurisdiction.
FTC is mentioned in Section 90 and Section 91 of Income Tax Act, 1961. In India, taxability totally depends on the residential status and the source of income. Both Non-Resident (NR) and Not Ordinarily Resident (NOR) is taxed on the Indian sourced income. A Resident and Ordinarily Resident (ROR) are taxed on worldwide income.
As per Rule 128(9) of the Income Tax Rules, assessee shall submit a statement in Form 67 before the due date in order to claim the credit after the return is filed.
A notification issued by the Central Board of Direct Taxes (CBDT) today allows online submission of the statement.
The form shall be available to all the assessees’ login. They required to login into the e-filing portal using valid credentials.
Read the full text of the Notification below.
