Foreign Tax Credit (FTC)
For each country/source, credit is the LOWER of (foreign tax paid) or (Indian tax on the same income). Anything above is not creditable and not refundable.
Result
| Country | Foreign tax | Indian tax on same | Creditable | Non-creditable excess |
|---|---|---|---|---|
| Source 1 | ₹0 | ₹0 | ₹0 | ₹0 |
| Total | ₹0 | ₹0 | ₹0 | ₹0 |
Form 67 reminder: Rule 128 requires Form 67 to be filed by the end of the assessment year to claim FTC. Late filing has historically been treated as a directory (not mandatory) requirement, but file on time to avoid disputes.
How we calculate this
Source: Income Tax Department — — bracket schedule.
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| Band | Rate |
|---|
- For each income source taxed abroad, compute Indian tax on that income (proportionate average rate × foreign income).
- Credit = min(foreign tax paid, Indian tax on the same income). The excess foreign tax is not creditable and not refundable.
- Add per-source credits to arrive at the total FTC claim.
- File Form 67 by the end of the assessment year [Rule 128].
NOT financial advice - seek advice from a professional for your specific situation
Read the matching guide: DTAA & foreign tax credit →
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