NRI wrongly filed Form 67

NRI wrongly filed Form 67

Hi,

Kindly help me resolve the following Income Tax issue for my brother. He was an NRI (Residential status) in the A.Y. 2024-25.

In India, since his income was below the exemption limit, there was no tax liability. However, there was a refund of the TDS amount - deducted for a Fixed Deposit, which was processed by the CPC u/s 143(1).

However, he wrongly filed the Form 67 for his Salary Income (earned in the UK).


We’ve researched and concluded the following. Let me know if we are wrong in any of the points below:
- For an NRI, foreign income need not be declared / taxed in India.
- This form (Form 67) is for Residents having foreign income and trying to claim foreign tax credit against a tax liability in India. But, that's not the case here as his status was NRI.
- Even though the wrong filing of Form 67, there's no claiming of this tax credit in ITR-2 filed for the relevant A.Y. (realized this mistake of filing Form 67 before filing ITR-2).


I am writing this to help guide my brother who would like to find a solution to this wrong filing proactively and avoid a future notice from ITD, in case.

Alternatively, can we just leave it as it is and handle it at the time of notice - what are the consequences then? How to handle it then?

Asked 6 days ago in Income Tax

You are correct: Since your brother was an NRI in AY 2024-25, his UK salary income is not taxable in India. Form 67 is only relevant for Residents claiming Foreign Tax Credit (FTC).

Impact of wrong filing: Merely uploading Form 67 (without claiming FTC in the ITR) does not create any tax liability or invalidate the return. The ITR filed correctly (without foreign income/FTC) is what matters.

Action needed: No rectification or revised filing is required. You may keep copies of ITR and residency proof in case of future inquiry.

If a notice ever comes: Simply explain that Form 67 was uploaded by mistake, but no FTC was claimed and no foreign income was offered in ITR.

Shubham Goyal

CA, Delhi

476 Answers

12 Consultations

Talk to Shubham Goyal

No immediate consequence: Since the ITR doesn’t claim FTC, Form 67 is just a “redundant” filing.

No mismatch: CPC will not adjust or reject refund based on an irrelevant Form 67.

Possibility of notice: Very low. At best, if selected for scrutiny, the AO may ask why Form 67 was filed. The explanation (“mistakenly filed, but no claim in ITR”) is sufficient defense.

📌 Recommendation

Best course: Do nothing now.

Keep a written note (self-explanation + screenshots of ITR-2 showing no FTC claim) in your brother’s records.

If ITD raises the point in scrutiny or inquiry, simply respond with the above explanation.

✅ Bottom line:
Your conclusion is correct:

NRI = no foreign income declaration in India.

Wrong filing of Form 67 is irrelevant unless FTC was actually claimed.

No risk of refund reversal or automatic notice; at worst, a clarification may be sought later, which is easy to handle.

Damini Agarwal

CA, Bangalore, Bengaluru

539 Answers

31 Consultations

Talk to Damini Agarwal

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!

Ask a CA

NRI wrongly filed Form 67

📌 Recommendation Best course: Do nothing now. Keep a written note (self-explanation + screenshots of ITR-2 showing no FTC claim) in your brother’s records. If ITD raises the point in scrutiny or inquiry, simply respond with the above explanation.

Ask a Chartered Accountant

📌 Recommendation

Best course: Do nothing now.

Keep a written note (self-explanation + screenshots of ITR-2 showing no FTC claim) in your brother’s records.

If ITD raises the point in scrutiny or inquiry, simply respond with the above explanation.