how to take foreign tax credit for salary income earned in germany?

Resident Indian has went for project to Germany for 2 months. where they have deducted tax for that and for same Indian employer has deducted tds. how to claim refund? should we file form 67. pls someone guide
Replies (3)
Form 67 is a crucial document that has to be furnished in order to claim FTC. It is also essential that it be furnished on or before the due date of filing return of income under section 139(1) i.e. the original return of income

What form is required to be submitted while filling form 16 as form US form 1042-s is the proof of tax with-held then what similar form is called in germany ?

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.

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