Form 67 of the Income Tax Act: How to Claim Foreign Tax Credit

Last updated: Oct 2026

Form 67 lets a resident claim credit in India for tax already paid abroad on the same income. The credit is the lower of the foreign tax paid and the Indian tax on that income. File it before your return.

• Earlier years: assessment year (AY) 2026-27 and earlier, under Rule 128 of the Income Tax Rules, 1962
• Form 44: Tax Year 2026-27 onwards, under Rule 76 of the Income Tax Rules, 2026
• Deadline: the end of the assessment year, which is 31 March 2027 for AY 2026-27
• Cap: the lower of foreign tax paid and Indian tax attributable

• Example: Rs. 1,00,000 of foreign tax on Rs. 4,00,000 of dividends gives a Rs. 1,00,000 credit

  
  

Match the figures on the statement to your return schedules. A return processed without the credit raises a demand that is harder to reverse.

Form 67 is the online statement through which a resident taxpayer claims a foreign tax credit (FTC). It prevents the same income being taxed twice, once abroad and once in India.

It applies where foreign income is taxed abroad and also taxable in India. The relief comes from the Double Taxation Avoidance Agreement (DTAA) with the other country, under Sections 90, 90A and 91 of the Income Tax Act, 1961. Section 90 becomes Section 159 under the Income Tax Act, 2025.

The year of the income decides the form, not the year in which you file.

The older form stays valid for earlier years even when you file it after 1 April 2026. Form 44 makes the foreign Tax Identification Number (TIN) mandatory. Select the right form and the matching year on the portal, because a wrong year mismatches your return.

For AY 2026-27, the outer date is 31 March 2027, the end of the assessment year. Rule 128(9), amended with effect from 1 April 2022, allows filing up to that date if your return was filed within the time allowed under Section 139(1) or 139(4).

File the statement before the return, not after. If the department processes your return without the credit, it raises a demand, and the fix then becomes an appeal.

Six steps cover it, and the calculation comes first.

1. Work out the credit country by country and source by source.
2. Collect the foreign tax statement and proof that you paid it.
3. Log in to the portal and open the forms section.
4. Select the form and the assessment year that your return uses.
5. Enter the foreign income, the foreign tax and the Indian tax attributable, then attach the documents.

6. Submit and verify as the portal prompts, then file your return and mirror the same figures in its schedules.

   
   

Read aloud: calculate, collect, open, select, enter, submit. Do not select Form 44 for AY 2026-27 or earlier.

The credit equals the lower of the foreign tax you paid and the Indian tax on that same income. Any foreign tax above the Indian tax is lost.

Formula used: Credit = lower of (foreign tax paid, Indian tax attributable to the foreign income).

Assumptions: Rs. 4,00,000 of dividends, with an Indian tax of Rs. 1,20,000 including cess. In the first case, the foreign country withheld 25%.

Consider Karthik, a 37-year-old engineer in Hyderabad with a household income of Rs. 3.5 lakh a month and a CIBIL Score of 781, who received Rs. 4,00,000 of dividends from foreign shares. The country of source withheld 25%.

Karthik filed the statement in August, then filed ITR-2. See which form fits in the guide to which return form a salaried person files.

You lose the credit for that year. The department can allow a late filing on a request with a valid reason, but you should not count on it.

If your return is processed without the credit, expect a demand notice. You then have to defend the position, which takes more effort than filing the form first. If a foreign tax authority later refunds tax for which you claimed credit, you must reduce the credit.

Bajaj Finance reviews income documents, so a return that reports foreign income and the credit claimed keeps your records consistent.

Approval timelines can extend where income records show foreign income that needs clarification, and minimum income thresholds can differ by city. Check your home loan eligibility.