Finance/Compliance Consultant
77882 Points
Posted on 07 November 2026
Claim FTC through Form 67:
• As a resident, your global income (including German salary for the 2-month project) is taxable in India. Tax withheld in Germany is creditable under the India–Germany DTAA (Article 23) / Sec 90.
• Steps: report the German salary in your ITR (salary schedule, as foreign salary; Schedule FSI with country Germany, income and tax paid; Schedule TR for the relief claimed). File Form 67 (online, before the ITR or by the belated due date) with proof of German tax (Lohnsteuerbescheinigung or payslips showing tax withheld).
• Credit = the lower of German tax paid and Indian tax on that income (Rule 128). Convert at the SBI TT buying rate on the last day of the month before tax was deducted.
• Short assignments under 183 days may be exempt in Germany under the treaty's dependent personal services article (if paid by the Indian employer). If German tax was withheld anyway, claim a German refund rather than FTC.