Form 67 FTC
This query is : Resolved
12 July 2025
Dear Colleagues
Based on ITR of USA which has details of income and taxes paid for a calendar year while in we have Apr - March . In order to match the same how to delete Jan- March of 24 and add Jan-Mar 25 and corresponding taxes for the period . Also when the ITRs in U.S was filed jointly by Husband and wife how to split up and attache tax paid challans which is for a whole amount
Based on ITR of USA which has details of income and taxes paid for a calendar year while in we have Apr - March . In order to match the same how to delete Jan- March of 24 and add Jan-Mar 25 and corresponding taxes for the period . Also when the ITRs in U.S was filed jointly by Husband and wife how to split up and attache tax paid challans which is for a whole amount
12 August 2025
Form 67 (Foreign Tax Credit) filing can be tricky when foreign income and taxes are reported on a calendar year basis (Jan-Dec), while Indian tax year is April-March. Here’s how you can handle your situation:
1. Adjusting Foreign Income for Indian FY (Apr-Mar) from US Calendar Year (Jan-Dec)
Foreign Income Reporting:
To match the Indian FY (e.g., FY 2024-25 = 01-Apr-2024 to 31-Mar-2025), you need to split the US income reported in calendar years.
For FY 2024-25, take:
Income from Jan-Mar 2024 → Exclude (belongs to FY 2023-24)
Income from Apr-Dec 2024 → Include in FY 2024-25
Income from Jan-Mar 2025 → Include in FY 2024-25 (you might have to get this from projections or next year ITR)
Tax Paid:
Similar split to be done for tax paid in US.
In practice:
Many taxpayers prorate the income and tax paid for the Indian FY by taking 9 months (Apr-Dec) from the current US calendar year + 3 months (Jan-Mar) from next US calendar year.
2. Splitting Joint US ITR Tax Paid Between Husband and Wife
When US tax return is filed jointly by husband and wife and tax paid challan is for combined tax, you should:
Determine the proportionate income of each spouse as per US ITR.
Split the total tax paid accordingly.
Attach computation of income and tax split along with Form 67.
Attach the joint tax payment challan and a declaration explaining the split for clarity during assessment.
3. How to Attach Documents with Form 67
Attach:
Copy of the foreign tax return (US ITR).
Proof of tax payment (challan/receipt).
Computation showing split of income and tax if joint return.
Declaration explaining the split for joint filers.
1. Adjusting Foreign Income for Indian FY (Apr-Mar) from US Calendar Year (Jan-Dec)
Foreign Income Reporting:
To match the Indian FY (e.g., FY 2024-25 = 01-Apr-2024 to 31-Mar-2025), you need to split the US income reported in calendar years.
For FY 2024-25, take:
Income from Jan-Mar 2024 → Exclude (belongs to FY 2023-24)
Income from Apr-Dec 2024 → Include in FY 2024-25
Income from Jan-Mar 2025 → Include in FY 2024-25 (you might have to get this from projections or next year ITR)
Tax Paid:
Similar split to be done for tax paid in US.
In practice:
Many taxpayers prorate the income and tax paid for the Indian FY by taking 9 months (Apr-Dec) from the current US calendar year + 3 months (Jan-Mar) from next US calendar year.
2. Splitting Joint US ITR Tax Paid Between Husband and Wife
When US tax return is filed jointly by husband and wife and tax paid challan is for combined tax, you should:
Determine the proportionate income of each spouse as per US ITR.
Split the total tax paid accordingly.
Attach computation of income and tax split along with Form 67.
Attach the joint tax payment challan and a declaration explaining the split for clarity during assessment.
3. How to Attach Documents with Form 67
Attach:
Copy of the foreign tax return (US ITR).
Proof of tax payment (challan/receipt).
Computation showing split of income and tax if joint return.
Declaration explaining the split for joint filers.
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