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What is FTC (Foreign Tax Credit) Computation?

If you’re an NRI, foreign company, or Indian resident earning income overseas, you may be taxed twice — once in the foreign country and again in India. To avoid double taxation in India, the Income Tax Act allows you to claim foreign tax credit in India under DTAA or under Section 90/91.

This India tax credit for global income is called Foreign Tax Credit (FTC). It allows you to reduce Indian tax payable by the amount of tax already paid abroad — ensuring you are not taxed twice on the same income.

Role of Form 67 in Foreign Tax Credit (FTC)

To legally claim foreign tax credit in India, it is mandatory to file Form 67 online.

This is why Form 67 filing service India is a critical compliance for all NRIs, foreign income earners, and global businesses.

Form 67 contains:

  • Country-wise foreign income
  • Tax paid abroad
  • DTAA article used
  • Nature of income
  • Proof of tax payment

Without Foreign Tax Credit (Form 67) filing in India, the Income Tax Department will reject your FTC claim, even if tax was genuinely paid overseas.

Filing Timeline & Compliance Rules

  • Form 67 must be filed before the ITR due date (normally 31st October for audited cases)
  • It can be filed before or after ITR, but before the ITR due date
  • Filing is done online using PAN on the income‑tax portal

Late or missing Form 67 = No FTC allowed = Double taxation

How to Claim Foreign Tax Credit in India (3‑Step Process)

Step 1:DTAA Review

We analyze the relevant tax treaty under DTAA + Form 67 support to identify the correct article applicable to your income.

Step 2:FTC Computation for NRIs & Companies

We calculate the eligible FTC based on:

  • Foreign tax paid
  • Indian tax liability
  • Treaty limits

This forms your FTC computation for NRIs and enterprises.

Step 3:File Form 67 & Claim in ITR

We provide full Form 67 filing service India and reflect the FTC in your Income Tax Return.

Consequences of Not Filing Form 67 

  • Loss of FTC claim
  • Double taxation of the same income
  • Higher Indian tax payable
  • Interest and penalty notices
  • Lost refund claim for double taxation

Most Foreign Companies Face These Challenges Handling FTC in India

Claim foreign tax credit India without Form 67 → Rejected

DTAA applied incorrectly

FTC not matching ITR → Notices

Missed Form 67 deadline → Credit denied

No expert to handle India tax credit for global income

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Hear From Those Foreign Companies Who Trusted MAG for Their Compliance

Why MAG Is the #1 Choice for 1,000+ Foreign Companies Running in India

Others MAG
❌ Guesswork or use default credit, which is risky and leads to rejections later ✅ Compute FTC accurately under Rule 128 with correct currency conversion
❌ Miss Form 67 or file late and lose the claim ✅ Expert filing of Form 67 on time and linking it correctly with ITR
❌ Skip document verification and trigger mismatches ✅ Collect and verify TRC, Form 10F, and foreign tax proofs
❌ Use wrong treaty article or skip local limitations ✅ Apply correct DTAA article and Indian tax rules for each country
❌ File FTC without audit support, leave gaps in compliance ✅ Include FTC details in ITR, 3CD, and working papers wherever applicable
❌ No help if refund is stuck or credit is denied ✅ Handle scrutiny, respond to notices, and defend your claim end-to-end

Discover Foreign Tax Credit (FTC) Guide

Get a Step-by-Step Guide on Claiming the Tax You’ve Paid Abroad — With Form 67 Filing Made Simple, Legal & On Time

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General frequently asked questions

It allows you to reduce Indian tax by the amount of tax already paid abroad — avoiding double taxation.

Any resident or NRI earning foreign income that is taxable in India.

It is legally mandatory to support your FTC claim. Without it, Foreign Tax Credit (Form 67) filing India is considered invalid.

You’ll need:

 

-Foreign tax payment proof (tax slips, returns, credit notes)

-TRC (Tax Residency Certificate)

-Form 10F

-Details of income earned abroad

 

We review everything to ensure it’s audit-safe and accepted by CPC.

Yes. You can get an FTC claim under Section 90/91. Section 90 covers countries with which India has a DTAA, while Section 91 provides relief even if no DTAA exists.

We calculate eligibility and guide you based on your specific income and country.

Your refund claim for double taxation will be rejected.

Absolutely. We’ve helped clients claim FTC for:

 

-Dividends from foreign companies

-Foreign employment or consultancy income

-Business income taxed abroad

 

We apply DTAA rules or unilateral relief to maximize your credit.

Yes. FTC can reduce your tax payable in India and help you get a higher tax refund if excess TDS was deducted. Our team structures and computes FTC carefully to ensure the best tax outcome for you. 

A senior international tax CA reviews all FTC computation for NRIs & companies.

Yes. By working with MAG, you get:

 

-A written computation and filing summary

-Digital filing receipt of Form 67

-Tracker for FTC carry forward (if applicable)

 

We also remind you annually to renew your TRC or update your income records.

Common mistakes include missing Form 67 filing, claiming credit without supporting documents, reporting incorrect foreign income, and claiming taxes that are not eligible for FTC. These errors can lead to denial of the tax credit.

Yes. Form 67 is generally required to claim Foreign Tax Credit under Indian tax laws. It should be filed within the prescribed timeline along with the required supporting documents.

Yes. NRIs and returning Indians who are taxable in India on foreign income may be eligible to claim Foreign Tax Credit for taxes paid outside India, subject to applicable conditions.

Common documents include foreign tax payment certificates, tax returns filed abroad, income statements, proof of tax deduction, and other supporting records required under Indian tax regulations.

Foreign Tax Credit is generally restricted to the lower of the tax paid in the foreign country or the Indian tax payable on the same income. The calculation depends on the nature of income and applicable tax treaty provisions.

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