Form 67 / DTAA / Foreign Tax Credit

Your Foreign Tax Credit working — calculated, documented, kept for 16 years.

Compute the FTC you can claim on Form 67 under your DTAA treaty, get a personalised checklist of the supporting foreign tax documents you must retain, and save the whole bundle privately.

For: resident Indians with US RSUs, ESPP, foreign dividends or interest; NRIs claiming treaty relief on Indian income; returning NRIs in the year of return; and anyone who received foreign income with tax withheld at source.
Foreign Tax Credit Calculator

Enter your foreign income details

India has DTAAs with 95+ countries. The top 9 shown here have their specific article references built in; for others, we point you to the treaty text.
Different DTAA articles apply to different income heads. The working will reference the article that covers your selection.
In the same currency as the income above. This is what appears on your Form 1042-S (US), P60 (UK), IR8A (Singapore), or equivalent foreign withholding certificate.
Use the RBI reference rate on the date the income was received (not today's live rate). The official daily archive is at fbil.org.in — the Income Tax Department uses this rate for Schedule FA and Form 67 conversion.
Pick the slab that applies to your highest rupee of Indian income. These effective rates include the 4% Health and Education Cess.

What is Form 67?

Form 67 is the form a resident Indian files to claim Foreign Tax Credit (FTC) under a Double Taxation Avoidance Agreement (DTAA). It must be filed on or before the due date of the return of income under section 139(1), and it reports the foreign income, the foreign tax paid, the country concerned, and the treaty article invoked. If you skip Form 67 or file it late, the Income Tax Department can disallow the FTC claim and tax the same income twice.

Why retain the supporting documents for 16 years?

Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, foreign income and foreign assets can be assessed up to 16 years from the end of the relevant assessment year. That is significantly longer than the standard Income Tax Act lookback period. The documents that prove your FTC claim — foreign tax certificates, broker statements, employer letters, bank statements showing the forex conversion — are issued by foreign parties that have no obligation to keep copies for you, and do not appear in DigiLocker, the Income Tax Portal, or with your Indian CA. If you cannot produce them during scrutiny years later, the FTC can be retroactively disallowed and penalties levied.

This helper is built to address exactly that gap. Calculate your FTC, take the personalised checklist of supporting documents, and store the full bundle privately so the trail survives the 16-year window — regardless of what happens to your foreign employer, your foreign broker, or your job history.

Frequently asked questions

When must Form 67 be filed?

On or before the due date for furnishing your return of income under section 139(1). Historically the Income Tax Department has denied FTC claims where Form 67 was filed after the return due date, although several ITAT rulings have since taken a more taxpayer-favourable view. The safest practice is to file Form 67 before uploading your ITR.

What is Rule 128 and why does it limit my FTC?

Rule 128 of the Income Tax Rules limits Foreign Tax Credit to the lower of (a) the foreign tax actually paid on the specific foreign income, or (b) the Indian tax payable on the same foreign income at the average rate of Indian tax on total income (total tax ÷ total taxable income). By default this tool uses the marginal slab rate as a proxy, which overstates (b) — tick "I know my average rate" in the form for a precise calculation. Excess foreign tax above this cap is not refundable in India and cannot be carried forward — it is lost.

Which exchange rate should I use?

The RBI reference rate on the date the foreign income was received, not today's live market rate. The daily archive is at fbil.org.in. The Income Tax Department checks historical Schedule FA and Form 67 filings against this exact rate, so take a screenshot of the FBIL reading for every transaction date and keep it with your supporting documents.

Is excess foreign tax refundable in India?

No. If the foreign country withheld tax at a rate higher than your Indian effective rate on that slice of income, the excess is not refundable by the Indian tax authority and cannot be carried forward. Your only recourse for the excess is to claim a refund in the foreign country if eligible — for example, by filing a non-resident return in the US with treaty benefits.

Does Form 67 apply to NRIs?

Form 67 is primarily filed by resident Indians claiming FTC on foreign-source income under a DTAA. NRIs usually pay Indian tax only on Indian-sourced income, so FTC on foreign-source income does not apply. However, returning NRIs in the year they become Indian tax residents, and NRIs with specific Indian income where they wish to claim treaty relief, may need to file Form 67.

Can I claim FTC without actually paying the foreign tax?

No. Rule 128 requires that the foreign tax must have actually been paid, deducted, or withheld. Tax that is merely imposed but unpaid, or tax under dispute in the foreign country, does not qualify. For income with tax withheld at source — W-2, 1042-S, P60, T4, IR8A — the withholding itself satisfies the "paid" requirement.

Why retain foreign tax documents for 16 years?

Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, foreign income and foreign assets can be reassessed up to 16 years from the end of the relevant assessment year — significantly longer than the standard Income Tax Act lookback. During scrutiny years later, you will need the original Form 1042-S, P60, broker statement, bank statement, and Form 67 acknowledgement to substantiate your claim. These documents are not held by DigiLocker, the Income Tax Portal, or your Indian CA — keeping them is your responsibility.

Can my Indian CA access my foreign tax documents?

Generally no. Your Indian CA prepares the return and computes the tax position based on the documents you provide them. They do not have standing with foreign employers, foreign brokers, or foreign tax authorities to retrieve the underlying evidence if you lose it. They also typically retain client documents only for 6-8 years under Indian professional obligations, not 16 years. The retention burden sits with you.

More free tools: If you received a 143(1) intimation after filing your return, our 143(1) Intimation Decoder explains the adjustment, tells you which documents you need, and whether to accept, file rectification, or appeal. See all free tools.

Disclaimer: This tool provides a directional calculation to help you prepare Form 67. It is not professional tax advice. When using the marginal slab rate, the FTC eligible amount may be overstated and additional Indian tax may be understated — for precise results, use the "I know my average rate" option. Tax positions depend on your specific facts, the applicable DTAA, and your residency status — always confirm your final filing with a qualified Chartered Accountant before submission.