Relaxation in time limit to file Form 67 for claiming Foreign Tax Credit
August 26, 2022
As per Rule 128 of the Income Tax Rules, 1962 (the Rule), a person can claim the Foreign Tax Credit (FTC) of the taxes paid outside India against the taxes payable in India. FTC is allowed in the financial year in which respective income has been offered to tax in India. A person can claim FTC by furnishing a statement electronically in Form No. 67 on or before the due date for furnishing the original return of income.
The Central Board of Direct Taxes (CBDT) has amended Rule 128 to provide that Form 67 can be furnished on or before the end of the assessment year where Income Tax Return (ITR) for such assessment year has been furnished within the time specified under Section 139(1) of the Income Tax Act, 1961 (“the Act”) i.e., original ITR or Section 139(4) of the Act i.e., belated ITR.
However, in case of an updated return under Section 139(8A) of the Act, Form 67 to claim FTC relating to income included in the updated return shall be furnished on or before the date of filing of such updated return.
This amendment is effective from April 1, 2022, so it applies to the claims of FTC furnished during the Financial Year 2022-2023.
Last updated: 25/08/2022
Article contributed by:
Associate Director - Direct Tax
