I-T Dept allows taxpayers more time to claim credit for taxes paid outside India


PTI, Aug 19, 2022, 7:16 PM IST

New Delhi: The income tax department on Friday said taxpayers can claim credit for taxes paid outside India before the end of the assessment year if the I-T return is filed within the stipulated deadline. So far, Foreign Tax Credit (FTC) could have been claimed only if Form- 67 along with necessary documents were filed within the due date for filing the original return, thereby restricting the ability to claim credit for taxes paid outside India.

The Central Board of Direct Taxes (CBDT) has amended tax Rules providing relief to taxpayers in claiming Foreign Tax Credit (FTC). In a tweet, the income tax department said “the Statement in Form No. 67 can now be furnished on or before the end of the relevant Asstt Year”. The amendment operates retrospectively, so this benefit is available to all FTC claims filed during the current financial year, it added.

Nangia Andersen LLP Partner- Direct Taxation, Sachin Garg said the amendment has provided much-needed relief to taxpayers who can now claim FTC by furnishing Form- 67 along with necessary documents before the end of the assessment year if the return is filed within the original due date or date of filing the belated tax return.

“The FTC can now be claimed even when filing an updated return of income, provided Form 67 is furnished before filing such return. This will certainly augment ease of doing business in India and prevent taxpayers from losing FTC permanently if Form 67 is not filed within the due date of filing return of income,” Garg said. AKM Global Head of Tax Markets Yeeshu Sehgal said this relaxation in filing Form-67 till the end of the assessment year instead of before the due date of filing the return is a relief to the taxpayers as they can claim FTC after filing the return as well.

“This will also lead to the reduction in tax disputes pertaining to FTCs since there have been divergent interpretations on the allowability of FTC in case of belated and non-filing of Form 67 at present as tax rules do not mention any consequences for non-filing of such form,” Sehgal added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Balasore tragedy result of composite negligence of railway officials: Orissa High Court

Actress Kasthuri stokes controversy by her remarks on Telugu-speaking people in TN

Three convicted for 2016 Kollam collectorate blast case

Expect Canadian government to ensure justice, uphold rule of law: PM Modi

Lone tusker spotted on NH-166 near Karkala, disrupts traffic

Lokayukta police summon Karnataka CM Siddaramaiah for questioning in MUDA case on Wednesday

Not ‘kaun banega mukhyamantri’ contest; MVA to name CM pick after polls: Jairam Ramesh

Related Articles More

Balasore tragedy result of composite negligence of railway officials: Orissa High Court

Three convicted for 2016 Kollam collectorate blast case

Expect Canadian government to ensure justice, uphold rule of law: PM Modi

Group clash in Indore after argument over bursting firecrackers: NSA slapped against 2 accused

Police rescue 70 cattle after gunfight with cow smugglers in Rajasthan’s Bharatpur

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Balasore tragedy result of composite negligence of railway officials: Orissa High Court

Actress Kasthuri stokes controversy by her remarks on Telugu-speaking people in TN

Three convicted for 2016 Kollam collectorate blast case

Expect Canadian government to ensure justice, uphold rule of law: PM Modi

Group clash in Indore after argument over bursting firecrackers: NSA slapped against 2 accused

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.