CBDT Extends Time-limit for Furnishing of Form 67 (FTC)

Notification No. 100/2022, dated 18-08-2022

Where an assessee has paid tax in any country or specified territory outside India, he can claim a credit for the same. The credit is allowed in the year in which assessee offers such income to tax. The credit shall be lower of the tax payable on such income under the Income-tax Act and foreign tax paid on such income. If the amount of foreign tax exceeds the amount of tax payable as per the provisions of the DTAA, such excess shall be ignored while calculating the Foreign Tax Credit (FTC).

Rule 128 of the Income-tax Rules, 1962 provides norms for allowing FTC to a taxpayer. As per said rule, to claim the foreign tax credit, the assessee shall furnish a statement of income offered to tax for the previous year and foreign tax which has been deducted or paid on such income. Such statement shall be furnished electronically in Form No. 67 on or before the due date for furnishing his return of income under section 139(1), i.e., original return of income.

The Central Board of Direct Taxes (CBDT) has amended Rule 128 to provide that Form 67 can be furnished on or before the end of assessment year where return of income for such assessment year has been furnished within the time specified under Section 139(1) or Section 139(4).

Where an updated return has been furnished by the assessee under Section 139(8A), Form 67 (relating to income included in updated return) shall be furnished on or before the date of filing of such updated return.

The amendment is effective from 01-04-2022 and thus applies to all the FTC claims furnished during the financial year 2022-2023.

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