Form 67: How to Claim Foreign Tax Credit in India

If you are an Indian resident and you already paid tax abroad on the same income that India also taxes, you do not have to pay twice. Foreign Tax Credit (FTC) lets you offset the foreign tax against your Indian tax bill, but you must file Form 67 online to claim it. This guide walks the filing flow first, then a worked example, then the rules and the one timing trap that catches most people.

Form 67 is filed entirely online on the e-filing portal before or alongside your return. Follow this order:

1. Log in at the income-tax e-filing portal (incometax.gov.in) with your PAN and password.
2. Go to e-File > Income Tax Forms > File Income Tax Forms and search for Form 67.
3. Select the relevant assessment year (AY 2026-27 for income earned in FY 2025-26).
4. Enter the country, the nature of the foreign income, and the amount of that income.
5. Enter the foreign tax paid or deducted on that income, with the applicable section, 90, 90A or 91.
6. Attach proof: a tax-payment certificate or statement from the foreign tax authority or deductor, or proof of payment.
7. Preview, then submit and e-verify Form 67 using Aadhaar OTP, net banking, or DSC.
8. File your ITR and claim the foreign tax credit in the Schedule FSI and Schedule TR fields, so the credit reduces your Indian tax.

The credit appears in your computation only after both the verified Form 67 and the matching ITR figures line up, so keep the numbers consistent across both.

Priya is a resident of India for FY 2025-26. She worked in the United States for part of the year and earned salary there of ₹12,00,000, on which the US withheld tax of ₹2,40,000. Because she is a resident, India taxes her global income, so this same ₹12,00,000 is also included in her Indian return.

Suppose the Indian tax attributable to that foreign salary works out to ₹3,00,000. Without relief, Priya would pay ₹2,40,000 in the US plus ₹3,00,000 in India on the same income. With FTC, she claims credit for the foreign tax against her Indian liability.

The credit is the lower of the foreign tax paid and the Indian tax on that income. Priya gets ₹2,40,000 credited, so she pays only the ₹60,000 balance in India instead of the full ₹3,00,000. If the foreign tax had been higher than the Indian tax, the credit would have been capped at the Indian tax on that income, and the excess foreign tax is not refunded by India.

FTC is grounded in the Income-tax Act 1961 and Rule 128 of the Income-tax Rules 1962. Where India has a Double Taxation Avoidance Agreement (DTAA) with the other country, relief is claimed under section 90 (or section 90A for specified associations). Where there is no DTAA, relief comes under section 91. Rule 128 sets out how the credit is computed and the documents required, and Form 67 is the prescribed form to claim it.

A few core rules:

• The credit is allowed in the year the foreign income is offered to tax in India.
• Credit is given against income tax, surcharge and cess, but not against interest, fee or penalty.
• The credit is the lower of the foreign tax and the Indian tax on that income, computed source by source and country by country.
• Disputed foreign tax is generally not creditable until the dispute is settled.

This is the part people get wrong. Earlier, Form 67 had to be filed before the ITR. That changed. After CBDT Notification 100/2022, which amended Rule 128 with effect from 1 April 2022, Form 67 can now be furnished on or before the end of the relevant assessment year, provided the return was filed within the time allowed under section 139(1) or section 139(4). For an updated return under section 139(8A), Form 67 must be filed on or before the date of furnishing that updated return.

So for FY 2025-26 income (AY 2026-27), you have until 31 March 2027 to file Form 67, as long as your ITR itself is filed on time. See our guide to belated and revised returns for how the 139(1) and 139(4) windows work.

Even if you miss this, courts have softened the blow. The trend across several benches of the Income Tax Appellate Tribunal is that filing Form 67 is procedural or directory, not a hard condition that destroys the credit, especially where a DTAA grants the underlying right. In Asha Rani Pandya v. CPC (ITAT Indore, 2024), the tribunal held that belated filing of Form 67 does not by itself deny FTC under section 90. This is relief at the appellate stage, not a reason to file late, so treat the assessment-year deadline as your real cut-off.

• A certificate or statement of foreign tax paid, issued by the foreign tax authority or the deductor.
• Proof of the tax payment, such as a challan, withholding statement, or foreign Form W-2 equivalent.
• Details of the foreign income, country, and the DTAA article or section relied on.
• Your foreign and Indian income computation, so the source-wise credit can be matched.

Yes, Rule 128 requires Form 67 to be filed online and e-verified to claim FTC. While tribunals have treated late filing leniently, you should always file it to avoid a dispute and a needless appeal.

On or before the end of the assessment year, that is 31 March 2027, provided your ITR is filed within the section 139(1) or 139(4) time limit. For an updated return, file Form 67 by the date of that updated return.

Use section 90 (or 90A) if India has a DTAA with the country where you paid tax. Use section 91 if there is no DTAA with that country.

The lower of the foreign tax paid and the Indian tax on that same income, computed source by source. India does not refund foreign tax that exceeds the Indian tax on that income.

Yes. FTC under section 90, 90A or 91 is available regardless of whether you are on the old or new regime. If you are weighing regimes, see how to switch tax regime with Form 10-IEA.

A certificate or statement from the foreign tax authority or deductor, plus proof of payment such as a challan or withholding statement. Keep these ready before you start Form 67.

If you earned income abroad as a resident, gather your foreign tax certificates now, file Form 67 online and e-verify it, then file your ITR claiming the credit in Schedules FSI and TR, all before 31 March 2027. For a deeper grounding in your information and tax rights, read The RTI Playbook and browse more guides on the RTI Wiki.

Sources: Income-tax Act 1961, sections 90, 90A and 91; Rule 128 of the Income-tax Rules 1962; CBDT Notification 100/2022 dated 18 August 2022 (Rule 128 amendment effective 1 April 2022); Form 67 user manual, incometax.gov.in; Asha Rani Pandya v. CPC, ITAT Indore (2024). This is general information for citizens, not tax advice; verify your figures against the e-filing portal or a qualified professional.