GST on Services not to be Included in TDS – CBDT Clarifies
February 13, 2018
Revised Procedure for Issuing Notices u/s 142(1)
March 21, 2018

Procedure for Filing Form 67 When Claiming Foreign Tax Credits

Nobody likes paying taxes.  We all understand its necessary for the government to continue taking care of our basic necessities, like water, roads, sanitation, etc.  But imagine, if you had to pay taxes after having already paid your taxes.  As borders disappear and more people re-locate to work in different countries, double taxation is a reality.  To prevent this, the Indian government allows the resident to claim foreign tax credit for any taxes paid outside India for the corresponding year, in the form of deductions or otherwise.

Previously, the government had inserted Rule 128, in the income tax act, making it mandatory to file form 67 for claiming any foreign credit u/s 90/90A/91.  Until date, there was no procedure mentioned for filing form 67, however CBDT, has recently issued a notice with the procedure for the filing of this form online, through the e-filing login of the taxpayer.  Form 67 must be furnished on or before the income tax return due date.  If the taxpayer fails to furnish form 67, then his/return will be treated as incomplete and a notice will be issued u/s 139(9).

So, individuals who have traveled abroad for the purpose of work, need to ensure that all the appropriate documents are furnished along with his/her return, such as From 67, so that credits/deductions can be claimed.  For error-free filing of your tax returns consult the experts at H&R Block India.

Click here to read entire circular.