What is Form 67? Foreign tax credit claim form — complete 2026 guide

Form 67 is the electronic statement prescribed under Rule 128 of the Income-tax Rules, 1962 through which a resident Indian taxpayer claims a foreign tax credit under Sections 90, 90A and 91 of the Income-tax Act, 1961 against the Indian tax payable on income that has already suffered tax in a foreign country. It is the procedural bridge between the substantive treaty right granted by India's network of Double Taxation Avoidance Agreements and the actual reduction of tax in an Indian assessment. Without it on file, the Centralised Processing Centre denies the credit, the taxpayer pays tax twice on the same income, and the recovery routes — rectification, updated return, appeal — are slow and expensive.

This guide is the canonical reference for Form 67 as it stands on 30 May 2026 — its statutory basis in Rule 128, the substantive right under Sections 90 and 91, the documents that must accompany it, the deadline regime as amended by CBDT Notification 100/2022, the ITAT and High Court rulings that have softened that deadline, the mechanical relationship with Schedule FSI and Schedule TR inside the ITR, and the looming transition to Form 44 under the Income-tax Act, 2025. The action walkthrough sits at Form 67 and FTC: avoiding US dividend double taxation. The transition explainer is at Form 67 to Form 44 transition for AY 2026-27. The deadline playbook is at Form 67 deadline tracker for AY 2026-27.

TL;DR. Form 67 is the electronic statement under Rule 128 of the Income-tax Rules, 1962 through which a resident Indian claims a foreign tax credit under Sections 90, 90A or 91 of the Income-tax Act, 1961. It must be filed on or before the end of the assessment year, supported by proof of foreign tax paid and a Tax Residency Certificate where Section 90 relief is claimed. It will be renumbered Form 44 from Tax Year 2026-27.

Definition and statutory basis

Form 67 is not itself a charging provision. It is a prescribed form notified by the Central Board of Direct Taxes under the rule-making power conferred by Section 295 of the Income-tax Act, 1961. The substantive right it operationalises draws from three distinct statutory streams that work in concert.

1. Section 90 of the Income-tax Act, 1961. This is the bilateral treaty relief provision. Where the Central Government has entered into a Double Taxation Avoidance Agreement with another country — the India-US DTAA signed in 1989 being the most relevant for retail Indian investors — Section 90 gives an Indian resident the right to claim relief in accordance with the terms of that treaty. Article 25 of the India-US DTAA is the typical operative provision, granting India the right to credit foreign tax paid in the United States against the Indian tax payable on the same income.

2. Section 90A. This mirrors Section 90 but covers agreements entered into between specified associations rather than sovereign governments — a relatively narrow category that nonetheless captures certain professional bodies and chambers of commerce.

3. Section 91 of the Income-tax Act, 1961. Where no DTAA exists between India and the source country, Section 91 provides a unilateral domestic foreign tax credit. The credit is computed at the lower of the Indian rate of tax or the rate of tax in the source country, applied to the doubly-taxed income. The mechanics are simpler than Section 90 because there is no treaty article to interpret, but the credit ceiling is the same lower-of cap.

4. Rule 128 of the Income-tax Rules, 1962. This is the procedural framework. Rule 128 codifies the lower-of cap, the year-of-offer rule, the treatment of disputed taxes, the documentation required and the timeline for furnishing Form 67. Sub-rule (9) of Rule 128, as amended by CBDT Notification 100/2022 dated 18 August 2022, sets the deadline.

5. Form 67. This is the prescribed format notified in Appendix II to the Income-tax Rules. It is electronic-only, filed through the Income Tax e-filing portal at incometax.gov.in under the taxpayer's PAN-linked login. There is no paper version.

The structural reading is that the treaty grants the right, Section 90 or Section 91 translates the right into Indian domestic law, Rule 128 sets the conditions, and Form 67 is the document through which the conditions are satisfied. Miss any layer and the credit fails — although as discussed below, the courts have been increasingly willing to forgive procedural failures where the substantive right is clear.

History — when Form 67 was introduced and how it has evolved

Foreign tax credit claims existed in Indian tax practice long before Form 67. Before Assessment Year 2017-18, an Indian resident claiming credit for tax paid abroad would attach supporting documents directly to the ITR, and the assessing officer would evaluate the claim without a prescribed template. The result was inconsistency — broker statements were accepted in one circle and rejected in another.

The Central Board of Direct Taxes addressed this through Notification 9/2017 dated 19 June 2017, which inserted Rule 128 into the Income-tax Rules, 1962 and notified Form 67 as the prescribed form for foreign tax credit claims, with effect from AY 2017-18. The original Rule 128(9) required Form 67 to be filed on or before the due date for furnishing the return under Section 139(1) — typically 31 July of the assessment year for non-audit cases. This pre-ITR deadline created a sharp procedural cliff and produced significant litigation. Taxpayers who had filed their ITR on time but Form 67 a few days later found themselves denied the foreign tax credit by the Centralised Processing Centre. The ITAT benches at Pune, Indore, Chennai, Delhi, Hyderabad, Mumbai and Kolkata began to hold the deadline directory rather than mandatory.

CBDT Notification 100/2022 dated 18 August 2022 amended Rule 128(9) with retrospective effect from 1 April 2022. The amendment replaced the pre-return deadline with an end-of-assessment-year deadline applying to original returns under Section 139(1), belated returns under Section 139(4) and updated returns under Section 139(8A). The amendment dramatically widened the window and largely eliminated the pre-ITR cliff that had driven the earlier litigation.

The Income-tax Act, 2025, the rewrite of the direct tax code, takes effect from 1 April 2026. It replaces Section 90 with Section 159 and the corresponding rules under the Income-tax Rules, 2026 renumber Form 67 as Form 44. The mechanics are broadly preserved. Form 67 continues to apply to AY 2026-27 returns being filed in 2026 in respect of FY 2025-26 income, with Form 44 taking over from Tax Year 2026-27 onwards.

What foreign tax credit means under Indian law

The foreign tax credit is a relief mechanism that prevents the same income from bearing tax in two jurisdictions. The mechanics differ depending on whether a treaty exists with the source country.

Section 90 bilateral credit

Where a Double Taxation Avoidance Agreement exists between India and the source country, relief is governed by the terms of the treaty. For the United States, Article 25 of the India-US DTAA provides that where a resident of India derives income which under the treaty may be taxed in the United States, India shall allow as a deduction from the tax on that income an amount equal to the tax paid in the United States, capped at the proportion of Indian tax attributable to the doubly-taxed income.

For a typical retail Indian investor in US stocks, the chain runs as follows. A dividend on a US-listed share is paid by the US payer. Where the investor has filed a Form W-8BEN with the broker, US withholding tax is deducted at the treaty rate of 25 percent rather than the statutory rate of 30 percent. The gross dividend is included in the Indian resident's total income under Section 5, taxed at the slab rate. The 25 percent already paid in the US is claimed as a foreign tax credit through Form 67.

Section 91 unilateral credit

Section 91 applies where no DTAA exists with the source country, or where a DTAA exists but the income type falls outside its coverage. The unilateral credit is computed as the lower of the Indian tax rate or the foreign tax rate applied to the doubly-taxed income. The countries with which India does not have a DTAA are now few, but Section 91 continues to govern edge cases such as income from countries with which India has terminated treaties.

The lower-of cap

Both Section 90 and Section 91 are subject to a lower-of cap. The foreign tax credit cannot exceed the Indian tax that would otherwise be payable on the doubly-taxed income. India does not refund foreign tax. It only forgives Indian tax to the extent the foreign tax has already covered the Indian liability on the same income. For a 30 percent slab investor receiving a US dividend, the 25 percent US withholding is fully absorbed and a small residual of Indian tax remains payable. For a 20 percent slab investor, the credit is capped at the Indian rate, leaving an unrecoverable excess of foreign tax — the structural reason high-slab investors benefit more from FTC.

Form 67 mechanics — when, how and where to file

Form 67 is filed electronically on the Income Tax e-filing portal at incometax.gov.in. There is no paper version and no offline submission route. The taxpayer logs in with PAN, navigates to the e-File menu, selects Income Tax Forms, and selects Form 67 from the dropdown. The form is filed for a specific assessment year — for AY 2026-27 in this article — and must be linked to the relevant return of income.

The structure of Form 67

The form has three substantive parts. Part A captures the basic details of the taxpayer — PAN, name, address, status — and the assessment year. Part B captures the foreign income country by country, with the gross amount, the head of income, the rate of tax in the source country, the foreign tax paid, the rate of tax in India, the Indian tax payable on the doubly-taxed income, and the credit available — the lower of the two. The form supports multiple countries and multiple heads of income within a single filing. Part C captures any refund of foreign tax received after the original claim, intimating the Department of a downward adjustment. A verification block confirms the contents.

Documents required under Rule 128(8)

Rule 128(8) prescribes three categories of supporting documents.

1. A statement of foreign income and foreign tax deducted or paid. Captured in the body of Form 67 itself in Part B.

2. Proof of payment of foreign tax. For US-source dividends, this is typically the Form 1042-S issued by the US payer or the consolidated tax statement from the US broker — Charles Schwab, Fidelity, Morgan Stanley Shareworks and Interactive Brokers all issue calendar-year statements that aggregate withholding by ticker. For foreign salary, the equivalent of a Form 16. For foreign business income, the foreign tax assessment.

3. A Tax Residency Certificate from the foreign tax authority where DTAA relief under Section 90 is being claimed. In practice the CPC accepts broker-issued withholding statements for retail dividend claims without requiring an IRS Form 6166 TRC. For larger or non-standard claims, the formal TRC is the conservative document.

Documents are uploaded as PDF attachments within the Form 67 submission flow.

Filing timing

The deadline under Rule 128(9), as amended by CBDT Notification 100/2022, has three windows applicable to AY 2026-27.

• Original return under Section 139(1): Form 67 must be filed on or before the end of the assessment year — 31 March 2027.
• Belated return under Section 139(4): same outer date of 31 March 2027.
• Updated return under Section 139(8A): on or before the due date of the updated return itself, extending up to 31 March 2031 for AY 2026-27 under the Finance Act 2025 48-month window.

The cleanest practice is to file Form 67 before or together with the ITR. For non-audit ITR-2 and ITR-3 filers, the ITR deadline is 31 July 2026. Filing Form 67 alongside the ITR lets the CPC reconcile Schedule FSI, Schedule TR and Form 67 in a single pass and reduces the risk of a mismatch notice under Section 143(1).

Form 67 vs Schedule TR vs Schedule FSI — the three-way relationship

The most common source of CPC denial is a mismatch between Form 67 and the corresponding schedules inside the ITR. Understanding what each does, and how they reconcile, is essential.

Item	Where it lives	What it discloses	Period
Schedule FSI	Inside ITR-2 or ITR-3	Foreign-source income country by country, broken out by head of income, with foreign tax paid	Financial year
Schedule TR	Inside ITR-2 or ITR-3	Summary of total tax relief claimed under DTAA or Section 91, cross-referenced to Schedule FSI	Financial year
Form 67	Separate electronic filing outside the ITR	Detailed FTC claim with supporting documents, computed against the lower-of cap	Assessment year (linked to specific ITR)

Schedule FSI is the foreign income disclosure. Every dollar of US dividend, every dollar of UK interest, every dollar of Singapore consulting income that an Indian resident has earned during the financial year is reported country by country in Schedule FSI, along with the foreign tax that was withheld or paid against it.

Schedule TR is the relief summary. It aggregates the tax relief claimed across all countries listed in Schedule FSI and identifies the section of the Income-tax Act under which the relief is being claimed — Section 90, 90A or 91. The aggregate figure in Schedule TR feeds the Total Tax Liability computation in the ITR and reduces the tax payable.

Form 67 is the substantive claim filing. It carries the same numbers as Schedule FSI and Schedule TR but in greater detail, supported by the documentary evidence required under Rule 128(8). Importantly, Form 67 is not a substitute for the schedules. The schedules report the credit inside the return; Form 67 substantiates it through a separate filing. Both must exist, and the numbers must reconcile.

A typical mismatch failure: the taxpayer uses one exchange-rate method in Schedule FSI and a slightly different one in Form 67, producing a Rs 300 gap. The CPC's automated reconciliation flags the mismatch and issues a notice under Section 143(1)(a) proposing to disallow the credit. The correction is straightforward but the delay runs into months.

Worked example — US dividend on Microsoft stock

Consider an Indian resident in the 30 percent slab who holds 100 shares of Microsoft in a US brokerage account funded through the Liberalised Remittance Scheme. During FY 2025-26, Microsoft paid a quarterly dividend of $0.75 per share on each of four payment dates, producing gross dividend income of $300 across the year. The US broker withheld tax at the treaty rate of 25 percent on each payment, having received the taxpayer's Form W-8BEN.

Convert to INR at an indicative rate of Rs 86 per USD — the actual conversion follows Rule 115, taking the SBI telegraphic transfer buying rate on each payment date independently.

Item	USD	INR
Gross dividend	300	25,800
US withholding tax at 25 percent	75	6,450
Net dividend received	225	19,350

The Indian resident is in the 30 percent slab. The Indian tax on the gross dividend of Rs 25,800 at 31.2 percent (30 percent slab plus 4 percent cess) is Rs 8,050.

Item	INR
Indian tax payable on gross dividend at 31.2 percent	8,050
Foreign tax credit available — lower of US tax (6,450) and Indian tax (8,050)	6,450
Residual Indian tax payable	1,600

The mechanics are clean. The US tax of Rs 6,450 fully credits against the Indian tax of Rs 8,050, leaving Rs 1,600 of residual Indian tax. Without Form 67, the entire Rs 8,050 would be payable in India in addition to the Rs 6,450 already withheld in the US, producing an effective rate of around 56 percent on the dividend. With Form 67 filed correctly, the effective rate collapses to the higher of the two — the Indian 31.2 percent.

For a 20 percent slab taxpayer, the Indian tax on the gross dividend at 20.8 percent is Rs 5,366. The foreign tax credit is capped at Rs 5,366 even though Rs 6,450 was paid in the US. The residual Rs 1,084 of US tax is unrecoverable — the structural lower-of cap in action.

For a complete walkthrough including the data-entry sequence on the e-filing portal, see the Form 67 walkthrough for Indian US-stock investors. To compute the credit for your own dividend history, use the Form 67 FTC calculator.

Deadline rules under Rule 128(9) post-amendment

The deadline regime as amended by CBDT Notification 100/2022 with retrospective effect from 1 April 2022 is the operative law for AY 2026-27. The amendment was a substantive liberalisation — the old pre-ITR cliff is gone. The new outer deadline is the end of the assessment year — 31 March 2027 — for original and belated returns, and the due date of an updated return for ITR-U filings.

The amendment also addressed several edge cases. A return filed late under Section 139(4) but before the end of the assessment year is now eligible for FTC. An updated return under Section 139(8A) can carry a fresh FTC claim accompanied by a Form 67 filed up to the due date of the ITR-U itself, although the additional tax payable on an updated return escalates over time. A taxpayer who has already filed Form 67 and subsequently discovers an error can revise the form through the e-filing portal; if the underlying ITR has been processed, the correction routes are rectification under Section 154 or an updated return.

For a scenario-driven walkthrough of the deadline regime including recovery routes, see the Form 67 deadline tracker for AY 2026-27.

ITAT rulings treating Rule 128(9) as directory

The case law on Form 67 timing is one of the most settled areas of recent Indian tax jurisprudence. Multiple ITAT benches have consistently held that the Rule 128(9) timeline is directory rather than mandatory — meaning that a delay in filing Form 67 does not extinguish the substantive right, provided the underlying treaty conditions and the documentary requirements are met.

The reasoning runs as follows. The substantive right to claim a foreign tax credit flows from Section 90 and the relevant DTAA. Rule 128 is a procedural rule made by the CBDT under Section 295. A procedural rule cannot extinguish a substantive right granted by statute or by treaty given effect through statute. Where the conditions of the substantive right are otherwise satisfied, the failure to file Form 67 in time is a curable procedural defect rather than a fatal one.

The benches that have followed this reasoning include Pune, Indore, Chennai, Delhi, Hyderabad, Mumbai and Kolkata. The Madras High Court reinforced the position in Duraiswamy Kumaraswamy, holding that Rule 128(9) is directory and that the substantive treaty right cannot be defeated by procedural delay. The High Court's view carries greater precedential weight than the tribunal decisions and has been cited approvingly in subsequent ITAT orders.

A taxpayer who misses the Form 67 deadline therefore has remedies. The CPC will normally deny the credit at the intimation stage under Section 143(1), after which the taxpayer can pursue a rectification application under Section 154, an appeal to the CIT(A) and ITAT, or an updated return under Section 139(8A) carrying a fresh Form 67. None of these routes is fast — the cost of representation and the two-to-four year wait for an ITAT hearing argue strongly for filing on time. The case law is insurance, not a strategy.

Form 67 to Form 44 — the Income-tax Act 2025 transition

The Income-tax Act, 2025 is the rewrite of the Income-tax Act, 1961. It takes effect from 1 April 2026 and applies prospectively to income earned in Tax Year 2026-27 and subsequent years. Income earned in FY 2025-26 continues to be governed by the Income-tax Act, 1961 even though the return is filed in 2026.

The corresponding Income-tax Rules, 2026 renumber many forms. Form 67 becomes Form 44 under the new rules. The lower-of cap, the year-of-offer rule, the documentary requirements and the deadline regime survive the transition with only structural adjustments. Notable changes:

• Form 44 is reorganised into three parts that more cleanly separate taxpayer identification, income and credit computation, and the events that trigger a downward adjustment.

• CA verification is proposed to become mandatory for Form 44 filings where the assessee is a company and for non-company assessees where the foreign tax paid exceeds rupees one lakh. Treat this as directional pending the final notified rules.

• Section 90 becomes Section 159 of the Income-tax Act, 2025. Rule 128 becomes Rule 76 of the Income-tax Rules, 2026 in the draft published for consultation.

For AY 2026-27 returns being filed in 2026 in respect of FY 2025-26 income, Form 67 remains the operative form and Rule 128 the operative rule. The deep dive is at Form 67 to Form 44 transition for AY 2026-27.

Common mistakes

Five errors account for the overwhelming majority of CPC denials.

First, mismatched figures across Form 67, Schedule FSI and Schedule TR. The three must reconcile to the rupee. The most frequent cause is using different INR conversion methods — Rule 115 dated rates in one document, an average rate in another. Pick the Rule 115 method and apply it consistently.

Second, claiming credit for foreign tax that does not qualify. US property taxes, certain US state income taxes, and municipal-bond items are not creditable foreign income taxes under Article 25 of the India-US DTAA. The credit is restricted to federal income taxes covered by the treaty. Including non-creditable taxes triggers a denial of the entire claim, not just the disqualified portion.

Third, claiming credit in the wrong year. The credit is anchored to the Indian assessment year in which the foreign income is offered to tax. US dividends received during FY 2025-26 are reported in AY 2026-27 regardless of when the 1042-S is issued.

Fourth, omitting Form 67 entirely while still claiming the credit in Schedule TR. The CPC's reconciliation engine flags the absence of a Form 67 against a claimed Schedule TR amount and disallows the credit. The fix is to file Form 67 immediately within the end-of-assessment-year window and rectify under Section 154 if the return has been processed.

Fifth, attaching the wrong documentary proof. The 1042-S is the canonical US-source dividend withholding proof. A broker statement without a 1042-S reference is accepted in practice but is weaker. A consolidated annual statement from an Indian neo-broker partner-routing to a US custodian must include the underlying US payer's withholding details.

A useful prevention practice is to maintain a single spreadsheet across the financial year tracking each dividend payment, the gross USD, the withholding in USD, the SBI TT buying rate on the payment date, and the INR equivalents. This spreadsheet then drives Form 67, Schedule FSI and Schedule TR identically.

Tools

The Form 67 FTC calculator translates broker tax statements into Form 67-ready row data. Upload a 1042-S or a consolidated broker tax statement, select the financial year, and the tool returns the SBI TT buying rate-converted INR amounts, the lower-of cap computation against the taxpayer's slab, and the line-by-line entries for Form 67 Part B, Schedule FSI and Schedule TR — reconciled across all three so the CPC's automated matching does not flag the filing.

Related concepts

Form 67 sits inside the wider machinery of Indian tax treatment of foreign income and assets. The following companion guides cover the related building blocks.

• What is Schedule FA? — the foreign-asset disclosure schedule that sits alongside the income and credit disclosures. Form 67 reports the credit; Schedule FA reports the underlying asset.

• What is Section 112? — the long-term capital gains charging section that applies to US shares. The Form 67 credit operates against the tax computed under Section 112 where US tax has been paid on the same gain.

• What is the LRS? — the RBI framework under which an Indian resident legally moves money to the US to buy the stocks that subsequently generate the dividends Form 67 reclaims.

• Form 67 and FTC: avoiding US dividend double taxation — the practical walkthrough with the e-filing portal screenshots and the line-by-line ITR entries.

• Form 67 to Form 44 transition for AY 2026-27 — the explainer on the Income-tax Act 2025 rewrite and what changes in the form number and rule reference.

• Form 67 deadline tracker for AY 2026-27 — the calendar and the case-law playbook for missed deadlines.

• US investing hub — the index of every guide, tool and explainer relevant to Indian residents investing in US securities.

Form 67 is the procedural form, but the substantive math behind it is the most valuable line item in an Indian US-investor's return. Filed on time, supported by clean documents and reconciled across Schedule FSI and Schedule TR, it converts a 56 percent effective rate on a US dividend into the higher of the two country rates and preserves the economic intent of the India-US DTAA. Filed late, lost or mismatched, it triggers an automated denial that takes years to recover through the appellate system. The case law gives the late filer a route home, but the cheap and correct course is to file by 31 July 2026 alongside the ITR for AY 2026-27, with Form 44 taking over from the next cycle.