• Form 67 for multiple 1042-s

I've 2 trading accounts in USA and I received dividend in those. So, I received total 2 form 1042-S. How to file form 67 for 2 form 1042-S. Can I zip both the files and upload or file separately for each form 1042-s ? How to calculate the conversion rate ?
Asked 23 days ago in Income Tax

Form 1042-S shows tax deducted by transferer, it does not prove amount of tax actually liable to be paid in the USA. You need a copy of tax return filed which shows separately the tax deducted, liability and refunds received.

 

Nabin Shrestha
CA, Chennai
5 Answers

Not rated

Filing Form 67 for Multiple 1042-S

  1. Single Form 67:

    • File a single Form 67 that includes details from both Form 1042-S.

  2. Attach Form 1042-S:

    • Merge both Form 1042-S into one PDF or zip them together and upload as a single attachment.

Steps to File

  1. Calculate Foreign Tax Credit:

    • Sum the income and tax withheld from both Form 1042-S.

  2. Conversion Rate:

    • Use the RBI rate for the date of dividend receipt. Convert each transaction separately if dates differ.

  3. Fill Form 67:

    • Enter the aggregated income and tax in INR using the conversion rates.

  4. Upload Documents:

    • Attach the merged PDF or zip file of both Form 1042-S.

Example

  1. Aggregating Income and Tax:

    • Account 1: Income = $1000, Tax = $150
    • Account 2: Income = $2000, Tax = $300
    • Total Income = $3000, Total Tax = $450

  2. Conversion to INR (Assuming 1 USD = 74 INR):

    • Total Income = $3000 * 74 = INR 222,000
    • Total Tax = $450 * 74 = INR 33,300

  3. Fill Form 67:

    • Enter totals in INR and attach supporting documents.

By following these steps, you can efficiently report your foreign tax credit for multiple Form 1042-S.

 

Best regards,

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

Attach both 1042 in single Form 67. Merge both in 1 file.

 

Use rule 115 of income tax rules for conversion rate.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4288 Answers
98 Consultations

5.0 on 5.0

- Attach both the Form 1042-S in single Form 67

- Conversion rate would be the TT buying rate of the last day of the month immediately preceding the month in which dividend was received

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

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