Relaxation in condition for availing the Foreign Tax Credit by filing Form No. 67

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Relaxation in condition for availing the Foreign Tax Credit by filing Form No. 67

 

 

Rule 128(9) of the Income-tax Rule, 1962 (Rule) provides that form 67 for claiming foreign tax credit shall be filed within the due date of filing of income tax return under section 139(1) of the Income-tax Act, 1961. There have been practical difficulties faced by several assessee to comply with this time-

 

Rule 128(9) of the Income-tax Rule, 1962 (Rule) provides that form 67 for claiming foreign tax credit shall be filed within the due date of filing of income tax return under section 139(1) of the Income-tax Act, 1961. There have been practical difficulties faced by several assessees to comply with this time-limit and various association/Trade Bodies have filed representation before CBDT to extend time-limit for filing form 67.

In this regard, CBDT has issued Notification No. 100/ 2022 dated 18th August, 2022 amending Rule 128(9) which now provides that Form 67 shall be furnished on or before the end of relevant Assessment year provided assessee has furnished return of income within time-limit prescribed for original return or revised return.

 

Separately, Finance Act, 2022 have brought provisions of Updated return. Where foreign income is included through updated return furnished under section 139(8A) of the Act, form 67 shall be furnished on or before the date on which such updated return is furnished.

This rule has been amended with effect from 1st April, 2022. It is also clarified that it is applicable for all claims filed during FY 2022-23 (which would obviously be pertaining to FY 2021-22) and for future years.

In nutshell, assessee need to file return latest by time-limit for filing belated return (claiming therein credit for foreign taxes) which is 31st December falling after the end of financial year and furnish Form 67 along with certificate/statement as proof of taxes paid overseas latest by 31st March falling after the end of financial year.

This is a beneficial amendment and would address the genuine difficulties faced by taxpayers.

The copy of the notification is as under:

 

Form 67 & Due date, Rule 128, FTC, 139(8A)

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