How to claim Foreign Tax Credit Claim in India

Concept of Foreign Tax Credit Claim

• In case taxpayer, who is a resident of India, & he paid income taxes outside India/ in foreign contrary, He can claim of such foreign taxes paid against his income tax payable in India.
• While claiming a deduction or claiming of Income taxes credit which has paid in the Foreign Source Nation against Income tax liability in the Indian Residence nation is called foreign tax credit in India.

How to claim Foreign Tax Credit Claim.  

• When Income Tax taxpayer (resident of India) receives income from a foreign Nation, Income Tax will be deducted from income by foreign state & Indian national Resident. In this matter, Indian residents may claim foreign tax credit for tax deducted amount in the foreign Nation through filing income Tax Form 67 with the Tax dept.
• According to the Income Tax Rules, 1962 – Rule 128 – Indian Residents who willing to claim foreign Tax credit, he must file income tax Form 67 on or before the time limit of ITR filing to foreign Tax credit for such foreign taxes. Income tax Form 67 is needed to be file in case Indian Residents willing to carry backward of losses of the C/Y which may results in income tax refund of foreign tax for which credit has been claimed in any P/Y.
• To avoid delays in getting the tax credit, file income tax Form 67 before the income tax return timeline. To file income tax Form 67 & obtain the proper foreign Tax credit, you can also speak with a tax expert.

 Income Tax Form 67 Timeline date for AY 2023-24

• • CBDT amended income tax Rule 128 specified that Income Tax Form 67 can be filed on or before the end of an AY, if the ITR for that year was submitted within timeline prescribed in Income Tax Section 139(1) or 139(4).
  • The above said income tax amendment has been taken place with effect from 1 April, 2022, & So applies to all foreign tax for which credit claims submitted during the financial year 2022-23.
  • If the Income Tax taxpayer (resident of India) has submitted an updated ITR U/s 139(8A), Income tax Form 67 shall be submitted on or before the date of filing of the updated income tax Return.
  • In case above said Income Tax Form 67 is not submitted within the deadline or time frame, the Foreign Tax Credit relief as sought by the Income tax taxpayer under Section 90 of the Income Tax Act can be denied.

**********************************************************

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.