Gst & Income Tax Consultant-Advocate

19/10/2025

Gst Impact on Business in India

09/10/2025

Form 67

Form 67 of the Income Tax Act is a mandatory statement that resident taxpayers in India must file to claim Foreign Tax Credit (FTC) for taxes paid on income earned outside India, ensuring that the same income is not taxed twice in both countries.

Purpose of Form 67
Form 67 allows a resident taxpayer to claim credit for any foreign tax paid, either through deduction or direct payment, on foreign income. This process prevents double taxation by offsetting Indian tax liability with taxes already paid abroad, as permitted under Double Taxation Avoidance Agreements (DTAA) and Rule 128 of the Income Tax Rules.

Structure and Components
Form 67 is divided into four main sections:

Part A: Basic details of the taxpayer, including Name, PAN, Address, Assessment Year, and income receipts from foreign countries with the amount of FTC claimed.

Part B: Details of any refund of foreign tax (due to carry-back losses or disputes), and adjustments to previously claimed FTC.

Verification: Self-declaration confirming the accuracy of provided information as per Rule 128.

Attachments: Supporting documents such as foreign tax payment certificates, proof of deduction, and income statement from the foreign country.

Filing Requirements
Form 67 must be submitted online via the Income Tax Department’s e-filing portal before filing the Indian income tax return to claim FTC for the relevant assessment year. It is crucial to file it within the prescribed timelines; delays may result in rejection of FTC claims, although condonation for late submission is possible in some cases with valid reasons.

Eligibility
Any resident taxpayer who is claiming foreign tax credit for income offered to tax in India, which has also been taxed abroad, needs to submit this form along with their ITR, attaching sufficient supporting documentation.

This provision helps Indian residents engaged in international business, employment, or investment manage their global tax liabilities efficiently and legally.

07/10/2025

DTAA, or Double Taxation Avoidance Agreement, is a bilateral treaty between India and other countries designed to prevent the same income from being taxed twice—once in India, and again in another country. These agreements help individuals and businesses engaged in cross-border activities by ensuring clarity, fairness, and reduced tax burdens.

What Is DTAA?
The Double Taxation Avoidance Agreement is a formal agreement signed by India with over 90 countries including the United States, United Kingdom, Germany, Australia, and more. DTAA’s primary purpose is to eliminate double taxation on the same income, which often occurs when income is earned in one country and the earner resides in another. Under DTAA, taxes paid in one country can be credited or exempted in the other, protecting taxpayers from paying tax twice on the same income.

Key Benefits of DTAA
Avoids double taxation on worldwide income for individuals and businesses.

Promotes international trade and investment by offering tax certainty and reduced rates on specific incomes, such as interest or royalties.

Encourages transparency and cooperation between tax authorities, curbing tax evasion and illegal tax practices.

Covers a wide range of income, including salaries, business profits, dividends, interest, capital gains, and more.

How DTAA Works
If a resident of India earns income in a country with which India has signed a DTAA, the taxpayer can claim benefits such as tax credits or exemptions in India for the taxes already paid abroad. To avail these benefits, the individual or entity must provide certain documents such as a Tax Residency Certificate and fill out Form 10F to establish eligibility.

Global Impact
By preventing double taxation, DTAA makes cross-border economic activity fairer and more attractive. It fosters global partnerships, encourages foreign direct investment, and ensures smoother financial transactions across borders.

In summary, DTAA is a globally recognized framework that supports individuals, businesses, and governments by promoting fair taxation, enhancing international cooperation, and simplifying the rules for global income taxation.

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27/09/2023

For those individuals who have business or professional income in FY 2022-23 (AY 2023-24) above the audit requirement threshold, should get the audit done by September 30, 2023, and the income tax audit report should be uploaded on to the ITR portal by the same date.