Form 67 and Foreign Tax Credit: Balancing Compliance and Rights in Indian Tax Law

CA Dipak Dama | Last updated: 10 August 2024

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This article explains the Foreign Tax Credit (FTC) system in India, designed to prevent double taxation on income earned abroad. It details the legislative framework, including Sections 90, 90A, and 91 of the Income Tax Act, and the procedural guidelines under Rule 128. A key focus is Form 67, the mandatory document for claiming FTC, and the implications of its late filing. Recent judicial decisions, such as those from the Bombay High Court and Delhi Tribunal, clarify that procedural delays in filing Form 67 should not automatically lead to the denial of a taxpayer's substantive right to claim FTC, provided there's no malafide intent or revenue loss.

Introduction In the more and more globalized economy, many Indian earns income from foreign sources, which can be taxed both in the country of origin and in India, leading to double taxation. To ease this, the Indian tax system allows for the claiming of Foreign Tax Credit , enable taxpayers to equ

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About the Author

CA Dipak Dama

Chartered Accountant

Partner at Chetan Agarwal amp; co. which is is a well-established legal practice founded in 2000. With a strong focus on client satisfaction and maintaining long-term relationships, we provide a wide range of legal services including direct tax, indirect tax, company law. Our team of experienced professionals, led by p ... Read more

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