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Form 67

shalini (CA) (528 Points)

09 June 2017

Is it required to submit form 67 also to claim FTC u/s90?

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7 Replies

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 09 June 2017

Yes, it is required to submit.

Please refer to the notification :-

Attached File : 277514 20170609123407 cbdt notification 54 2016 new income tax rule 128 foreign tax credit.pdf downloaded: 1824 times

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shalini (CA) (528 Points)
Replied 09 June 2017

Thanks a lot for your prompt reply Piyush...As per this notification these rules are effective from April,2017. I filed return for A.Y. 2016-17 claiming FTC and it is still not processed yet. I did not submit any proof of payment of taxes in the foregin country nor Form 67. I have tax return filed in Singapore as proof of payment but I do not know how to upload it now.

Please help.

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 09 June 2017

@ ShaliniCA

You must have statement of income from the employer outside india accompanying by ITR of that country and certificate by the employer showing particulars of income and tax deducted.

You need to show particulars required in DTAA filed when you are filing the return.

Tax Relief will be allowed on the average basis, but not on full basis.

You have to calculate tax relief u/s 90 in DTAA. Kindly see the calculation of tax relief as per the Link - https://taxpage.in/how-to-calculate-double-taxation-relief-under-section-90-90a-and-91.H T M L

Hope that will help in your query.

Thanks and Regards

Piyush Tanwar

CA Finalist and Internal Auditor

Mobile - 9717468521

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 09 June 2017

@ ShaliniCA

Please find attachment for the calculation for DTAA relief.

Attached File : 277514 20170609145154 tax calculation 30th sep 2016.xlsx downloaded: 999 times

Vivek Bhargava (ca) (28 Points)
Replied 06 September 2017

this form is applicable for AY 17-18 or from AY 18-19?

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Atul (Others) (71 Points)
Replied 30 May 2018

calculating section 90 relief amount for Form 67 requires using the Average tax rate for the person. And,

Average tax rate EQUALS ( Tax amt computed before deducting sec 90 relief) DIVIDED BY (Global taxable income). Should this Tax amt be computed using normal (IT act) rates OR the DTAA rates for foreign income?

This requires all income, deductions, etc. numbers to be available to compute the relief amount. Is that correct?

OR should sec 90 relief be calculated as (Global taxable income * DTAA tax rate for the relevant income category)..... this calculation can be done without using any income numbers other than the Global taxable income.

With the Form 67, it is not clear to me why the tax computed using DTAA rate, also needs to be reported on the Form 67,

Can some one pls throw some light on this?

Thanks.

Siddharth Shahu (2 Points)
Replied 31 August 2018

Piyush when you statement of income showing tax deduction and source of income . So for USA is it the W2 form or Something else like salary slips or does form 16 of india with annexure to FTC will suffice ?