What if the FTC Exceeds the Indian Tax Due Date?

The excess FTC cannot be refunded; however, it can be used to reduce Indian tax on the same income type in the same year.

Can NRIs Claim FTC for Foreign Capital Gains?

Gwneelly no, because the FTC applies to ordinary income, such as interest, dividends, and wages. FTCG from the sale of assets abroad is not covered.

By When Must Form 67 be Submitted?

File Form 67 online before filing your income tax return to avoid any complications in the process of claiming FTC.

NRI Income Tax & Compliance

Form 67 & Claim Of Foreign Tax Credit For NRIs

By Varun Gupta |Last Updated: September 26, 2025

Form 67 & Claim Of Foreign Tax Credit For NRIs

Non-resident individuals may feel overwhelmed when managing their financial affairs across borders, primarily due to concerns about paying taxes on the same income source. If this applies to you, understanding the foreign income tax credit (FTC) is essential, as it enables NRIs to avoid unnecessary tax burdens.

The foreign tax credits enable the NRIs to avoid being taxed twice on the same income source. As per section 90 of the Income Tax Act, the Double Taxation Avoidance Agreement of India with different countries reduces tax liability. To claim the benefit of this agreement, taxpayers must submit Form 67 of Income tax Act before filing their income tax return in India.

Varun Gupta(Tax Expert)

Mr Varun is a tax expert with over 13 years of experience in US taxation, accounting, bookkeeping, and payroll. Mr Gupta has not prepared and reviewed over 5000 individual and corporate tax returns for CPA firms and businesses.

Frequently Asked Questions

The Foreign Tax Credit (FTC) permits non-resident Indians (NRIs) to claim credits for the taxes they have paid in foreign countries to avoid double taxation.

The NRIs must submit Form 67 to claim FTC before filing their ITR and must attach the proof of foregin taxes paid.

To claim FTC, you will need a foregin tax certificate, salary slips, payment proof, Form 16, TRC, and more.

No, Foregin tax credit (FTC) must be claimed manually by filing Form 67.

To report foreign income in ITR, report it under Schedule FSI (salary, interest, etc.), then claim the foregin taxes paid (from Form 67) under TR schedule.

Form 67 & Claim Of Foreign Tax Credit For NRIs

Frequently Asked Questions

What is Foreign Tax Credit (FTC)?

Which Form Must NRIs File to Claim FTC?

What Documents are Required with Form 67 to Claim FTC?

Is FTC Granted Automatically?

How is Foreign Income Reported in ITR?

Form 67 & Claim Of Foreign Tax Credit For NRIs

Frequently Asked Questions

What is Foreign Tax Credit (FTC)?

Which Form Must NRIs File to Claim FTC?

What Documents are Required with Form 67 to Claim FTC?

Is FTC Granted Automatically?

How is Foreign Income Reported in ITR?