Foreign Tax Refund in ITR: Where to Declare?

Foreign Tax Refunded to Foreign Bank Account to be shown in ITR

Leo Samson

Self

33 Points Posted on 10 June 2023

I worked in Europe for 3 years. Tax cycle there is Jan - Dec. I came to India in Jan 2022, was jobless and shown zero income Jan - Mar 2022 in India ITR2(Non Resident) for Q4. My foreign country refunded the excess tax amount for Jan - Dec 2021 cycle during India FY 2022-23. Double taxation treaty exists between India and my foreign country.

I am now filing ITR for India FY 2022-23. Could you please advise whether I need to show this tax refund in euros credited to my foreign bank account either in Schedule FSI - Foreign Source Income (FSI) or in Schedule EI - Income not chargeable to tax through DTAA.

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Quick Summary

This discussion addresses how to declare a foreign tax refund received in your foreign bank account on your Indian Income Tax Return (ITR) for FY 2022-23. The user worked abroad and received a refund for the 2021 tax cycle after moving to India in January 2022. Advice is sought on whether to report this refund under Schedule FSI (Foreign Source Income) or Schedule EI (Income not chargeable to tax through DTAA), considering the existence of a Double Taxation Treaty.