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Foreign Tax Credit (FTC) and Filing of Income Tax Return (ITR)

Procedure for Foreign Tax Credit (FTC) and Filing of Income Tax Return (ITR)

September 26, 2017

CBDT notified the procedure for submission of Form 67 under Income Tax Rule 116 relating to deduction for Foreign Tax Credit (FTC) for filing Statement/ Income Tax Return (ITR) by a Resident for Incomes from a Country or Specified Territory Outside India.

The CBDT notification reads as below;

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income Tax (Systems)

Notification No 9

New Delhi, 19th September, 2017

Procedure for filing Statement of income from a country or specified territory outside India and Foreign Tax Credit

Foreign Tax Credit- An assessee, being a resident shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, in the manner and to the extent as specified in rule 128 of the Income tax (18th amendment) rules, 2016.

As per sub-rule 9 of rule 128 the statement in Form No.67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income.

In exercise of the powers delegated by Central Board of Direct Taxes (‘Board’) under rule 12(4) of the Income tax Rules 1962, the Principal Director General of Income-tax (Systems) hereby lays down the following procedures:

1. Online filing of Form 67: All assessee’s who are required to file return of income electronically under section 139(1) as per rule 12(3) of the income tax rules 1962, are required to prepare and submit form 67 online along with the return of income if credit for the amount of any foreign tax paid by the assessee in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India.

2. Preparation and Submission of Form 67: Form 67 shall be available to all the assessee’s login. The assessee is required to login into the e-filing portal using their valid credentials. A link for filing the Form has been provided under “e-File > Prepare and Submit Online Forms (Other than ITR)”. Select form 67 and assessment year from the drop down. Instructions to fill the form are enclosed along with the form. The completed Form 67 can be submitted by clicking on “Submit” button. Digital Signature Certificate or Electronic Verification Code is mandatory to submit Form 67.

3. Submission of Form 67 shall precede filing of return of income.

Pr. DGIT (Systems), CBDT

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