Yes, you need to file Form 67 before filing ITR in order to claim foreign tax credit.
Also, in the itr, you will have to mention the details of taxed paid in USA.
Can I claim 15% USA Withholding Tax credits while filing IT return in India?
I sell software online through a USA based firm envato.com and they deduct 15% withholding TAX on every sale that comes from a USA customer, not from any other country. Then they fill TAX each year (1 Jan to 31 Dec USA sales) under my name and pan-card as foreign tax identification number using 1042-S form. So how can I claim these tax credits in India while filling my final ITR. I think this is something that comes under double taxation policy. For example:- if I'm going to pay Rs 80000 as income tax after final calculation and if I have paid Rs 50000 as USA withholding tax so do I only need to pay Rs 30000 as income tax after deducting may USA withholding tax credits? am I right or wrong? And how to match USA withholding tax filing financial year(1 Jan - 31 Dec) with our financial year(1 Apr - 31 Mar)? I need an expert advice on it because I have already asked 5-6 CAs regarding this and all are confused on this matter, hope an expert can help me. Some helpful links that you should check before answer:- - https://help.author.envato.com/hc/en-us/articles/[deleted]-Tax-Forms-1099-and-1042-FAQs - https://www.irs.gov/forms-pubs/about-form-1042-s - https://www.pwc.in/assets/pdfs/news-alert-tax/2018/pwc_news_alert_30_july_2018_credit_of_taxes_withheld_outside_india_available.pdf - https://www.irs.gov/pub/irs-pdf/f1042s.pdf
Asked 5 years ago in Income Tax
someone advised that I need to attach Form-67 while filing ITR - https://www.incometaxindia.gov.in/forms/income-tax%20rules/itr62form67.pdf
Asked 5 years ago
Dear Sir,
Hope you are doing well !!
Yes, you will have to file form 67 before filing of income tax return in order to claim FTC (foreign tax credit).
It is advisable to take a phone consultation for detailed discussion.
Hello,
Yes, to claim the credit of foreign taxes paid, Form-67 is required to be furnished on or before the due date specified for furnishing the return of income.
I hope that this answer satisfies your requirements. For further understanding, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
It is advisable to take phone consultation for better understanding.
I can solve your queries.
First of all if you are just selling software online why dont you ask them if there is any way that you could save yourself from paying tax in USA by presenting TRC and no PE, because I think what they must be doing by filing return there is claiming refund of your tax paid.
Have you seen your income tax return?
You need to see it month wise and what was your earning in USA from April to March and calculate tax on same using the tax percentage you have paid during Jan to december.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Yes Form 67 is filed for claiming foreign tax credit and you will be required to file the same.
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