International Tax
Form 67 (Foreign Tax Credit) — Meaning
The form residents file before their ITR to claim credit for tax paid abroad.
What is Form 67 (Foreign Tax Credit)?
Form 67 is the statement of foreign income and foreign tax paid that a resident must file on the income tax portal, on or before filing the ITR, to claim a foreign tax credit. The credit is the lower of the foreign tax and the Indian tax on the same income, computed income by income and country by country, converted at the SBI telegraphic transfer buying rate on the last day of the month before the tax was paid. Without Form 67, the processing centre usually disallows the credit.
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More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
