Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What Form 67 does
When the same income is taxed both abroad and in India, you avoid double tax by claiming a foreign tax credit — and Form 67 is how you claim it. It sets out the foreign income, the foreign tax paid, and the credit you are taking against your Indian tax.
When to file it
Form 67 must be filed on or before the due date of your income-tax return (the rules now allow filing up to the end of the relevant assessment year in some cases), and you attach proof of the foreign tax — a certificate or the foreign return. Filing it late can cost you the credit. Confirm the current filing window.
A worked example
Example: as a resident-again (ROR) taxpayer you earned foreign interest taxed abroad at 15%, and it is also taxable in India. You file Form 67 with proof, claim credit for the 15% already paid, and pay only the balance in India. This matters most once you become an ordinary resident taxed on worldwide income. The credit is capped at the lower of the foreign tax and the Indian tax on that income, so if the foreign country taxed it more heavily you cannot use the full amount — the excess is simply lost, not refunded. Keeping the foreign tax certificate or return is essential, because the claim fails without proof. Our NRI tax service can file it.