(i) their residential status in India, and (ii) whether India has entered into a Double Taxation Avoidance Agreement (DTAA) with the foreign country.
March 31, 2026 is the deadline to file Form 67 for income earned in FY 2024–25
Eligibility to claim foreign tax credit in India
Claim of relief where India has a DTAA – Section 90
Claim of relief where no DTAA exists – Section 91
the Indian tax rate applicable to such foreign income, or
the foreign tax rate actually paid, applied to the doubly taxed income.
Procedural requirement – Form 67 and Rule 128
compute FTC separately for each country and each source of income, and
restrict the credit to the Indian tax payable on such income.
Many Indians working overseas and earning their income abroad have to pay taxes in that foreign country, be it Singapore, or the United States of America (USA). Additionally, if a salaried employee has already settled their taxes in that foreign country, India allows a foreign tax credit . But for getting this benefit, you must file Form 67 as per the Income Tax Rules, 2025.While it’s necessary to file Form 67 before the income tax return (ITR) deadline to receive the foreign tax credit (FTC), missing the deadline can lead to tax disputes. Some taxpayers have won these dispute cases in ITAT, but it's best to file Form 67 on time to secure the FTC credit in India to prevent double taxation.Chartered Accountant Suresh Surana mentions that an Indian citizen working abroad and paying taxes in a foreign jurisdiction can seek relief from double taxation in India through foreign tax credit (FTC) mechanisms outlined in the Indian tax law, which depend on:Chartered Accountant Gaurav Makhijani says that according to the Indian tax rules, Form 67 must be filed by the end of the relevant assessment year i.e., for income earned in FY 2024–25, Form 67 can be filed on or before March 31, 2026 in order to claim Foreign Tax Credit.Makhijani says: “However, the income-tax return claiming FTC must still be filed within the prescribed time limits.” It is advisable to file Form 67 before filing the income tax return, as this helps avoid automatic tax demands during return processing.According to Taxmann research, March 31, 2026 is the deadline for uploading of statement, of foreign income offered to tax and tax deducted or paid on such income in previous year (2024-25), in order to claim foreign tax credit in return filed under Section 139(1) or Section 139(4) using Form 67.Surana says that as per Section 5, a resident and ordinarily resident (ROR) individual is taxable in India on global income, including salary income earned abroad. Consequently, if such foreign income has already suffered tax overseas, relief is necessary to avoid double taxation.On the other hand, a non-resident (NR) or resident but not ordinarily resident (RNOR) is taxable in India only on income accruing or arising in India (or deemed so), and not on foreign income earned and taxed abroad, eliminating the need for FTC.According to Surana, where India has a DTAA with the foreign country (for example, the USA, UK, UAE, Singapore, etc.), relief is governed by Section 90 read with the relevant DTAA article on elimination of double taxation.In such cases, the taxpayer has the right to claim FTC in India for foreign taxes paid, restricted to the Indian tax attributable to such foreign income. Further, to avail DTAA benefits, the taxpayer must comply with Section 90(4) by furnishing a Tax Residency Certificate (TRC), Form 10F etc. from the foreign country.Surana says that if the foreign country does not have a DTAA with India, relief may still be available under Section 91 of the Act, which provides unilateral relief. Under this provision, the Indian resident is entitled to a deduction from Indian tax payable, calculated as the lower of:According to Surana, irrespective of whether relief is claimed under Section 90 (DTAA) or Section 91 (non-DTAA), the mechanism for claiming FTC is prescribed under Rule 128 of the Income-tax Rules, 1962. Rule 128 mandates that the taxpayer must:Form 67 has to be submitted electronically on or before the end of the relevant assessment year for which the income tax return is filed. Form 67 contains details of foreign income, foreign taxes paid, and supporting documentation such as foreign tax payment proofs or tax returns filed abroad.