Foreign Dividend

or Form 67, the Income Tax Department requires supporting documents for foreign income and taxes paid.

Acceptable proofs:

• Broker’s dividend statement / contract notes (showing actual dividend credited and foreign tax deducted).

• Bank statement reflecting dividend credit.

• Form 1042-S (if accurate).

In your case, since Form 1042-S is showing wrong figures, you can safely attach your broker dividend statement and bank credit statement as proof. These are sufficient and commonly accepted.

Just ensure the amounts match what you declare in Schedule FSI/FTC of the ITR.

1. Purpose of Form 67

Form 67 is filed online to claim Foreign Tax Credit (FTC) under Section 90/90A/91 of the Income-tax Act.

Along with the form, you are expected to attach supporting documents that prove:

The foreign income earned, and

The tax deducted/paid outside India.

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2. Acceptable Proofs of Foreign Income

The Income-tax Rules (Rule 128) say you should submit a certificate or statement specifying the nature of income and foreign tax deducted/paid. In practice, the following are usually accepted:

Form 1042-S (from US broker) – because it officially reports dividend income and withholding tax.

Broker’s Dividend Statement / Tax Statement – downloaded from your broker’s portal (shows actual credit to your account and tax deducted).

Annual consolidated statement (e.g., from Interactive Brokers, Fidelity, Charles Schwab, etc.).

Any certificate from the deductor or tax authority confirming the amount of foreign tax deducted.

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3. If 1042-S is Wrong

This happens quite often — brokers sometimes overstate or misclassify. In such cases:

-You can attach the broker’s transaction statement (detailing dividends received and tax withheld) as your proof.

-Add a self-declaration/explanation in PDF (attach with Form 67) stating that the 1042-S has errors and therefore you are relying on the broker’s dividend credit statement which reflects the actual income received.

- The Income-tax Department generally accepts broker statements as long as the income and tax deducted match what you have shown in your ITR.

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4. Best Practice

Attach both if possible: 1042-S and broker’s dividend statement. Then add a note in your declaration that you have considered actual dividend received as per broker statement since 1042-S contains discrepancies.

If you want to avoid attaching 1042-S entirely, it is still fine to rely on the broker’s dividend statement, but include a short cover note explaining why.

So yes, you can use your broker’s dividend statement as proof with Form 67. Just make sure it clearly shows:

• Date of dividend,
• Gross amount,
• Tax withheld, and
• Net credited.

Thanks 

Damini

www.thewitcorp.com

Form 1042-S is a conclusive proof of payment of foreign tax. Alternatively you can attach broker statement showing clearly the amount of dividend and WHT declared in the ITR.