Foreign Tax Credit Form 67 Calculator: DTAA Relief

Foreign Income & Tax Paid

Gross Foreign Income (in INR ₹)

Tax Paid in Foreign Country (in INR ₹)

Your Total Indian Income Tax Slab Rate (%)

Rule 128 Foreign Tax Credit Rules (2026)

Under Section 90/91 and Rule 128 of the Income Tax Act, Indian tax residents can claim credit for taxes paid overseas to avoid double taxation:

Condition	Rule 128 FTC Limit Formula
Foreign Tax < Indian Tax	100% Foreign Tax Allowed as FTC Credit
Foreign Tax > Indian Tax	FTC capped at Indian Tax Payable (Excess lapsed)
Mandatory Portal Filing	Form 67 submitted online before filing ITR-2/3

Key Benefits of Form 67 Filing

Eliminates Double Taxation: Prevents paying tax twice on US stocks, RSUs, or overseas consulting projects.
Statutory DTAA Protection: Leverages bilateral Double Taxation Avoidance Agreements under Section 90.

Limitations & Filing Deadlines (2026)

Form 67 E-Filing Prerequisite: Failure to submit Form 67 prior to filing ITR will result in automated disallowance of FTC tax credit by CPC.
No Carry-Forward of Unused Credit: Excess foreign tax paid cannot be carried forward to future financial years.

Form 67 E-Filing Pro Tip

Always upload your Form 1042-S or foreign tax receipt statement on the Income Tax e-Filing portal under Form 67 BEFORE clicking "Submit" on your ITR-2 return!

Frequently Asked Questions

What is Foreign Tax Credit (FTC) under Form 67?

Foreign Tax Credit (FTC) allows Indian tax residents to claim credit for taxes paid in a foreign country (e.g. US dividend withholding tax) against their Indian tax liability under Rule 128 of the Income Tax Rules.

What is the deadline to file Form 67?

Form 67 must be submitted electronically on the Income Tax e-filing portal on or before the due date for filing the ITR (or before the end of the assessment year under revised rules).

How is Rule 128 FTC relief calculated?

FTC is allowed as the LOWER of (1) Tax paid in foreign country, or (2) Indian tax payable on such foreign income.

What is Section 90 vs Section 91 Foreign Tax Credit?

Section 90 applies when India has a Double Taxation Avoidance Agreement (DTAA) with the foreign country (e.g. US, UK). Section 91 applies for countries with which India has no DTAA.

How are US stock dividends taxed for Indian residents?

US brokers deduct 25% withholding tax at source on US stock dividends. Indian residents must report the gross dividend income in India and claim 25% FTC credit via Form 67.

Can FTC be claimed if foreign tax paid exceeds Indian tax payable?

If foreign tax paid is higher than Indian tax payable on that income stream, FTC is capped at the Indian tax liability. The excess foreign tax cannot be refunded or carried forward.

What documents are required to prove foreign tax paid?

You must upload Form 1042-S (US broker statement), foreign tax return acknowledgment, or dividend tax withholding certificate along with Form 67.

Which ITR form must be filed when claiming FTC?

Taxpayers claiming Foreign Tax Credit must file ITR-2 or ITR-3 and disclose foreign assets under Schedule FA and foreign income under Schedule FSI.

Form 67 Foreign Tax Credit Calculator (2026)