Getting Foreign Tax Credit & How to submit Form 44 (aka Form 67) Online?

This document covers

1. Background
2. Double Taxation
3. Foreign Tax Credit
4. 📄Form 44, aka Form 67
5. Preparation and submission of 📄Form 44, aka Form 67
6. Foreign Tax Credit (FTC) Compliance – Transition from Form 67 to Form 44

1. Background

The effect of taxation is one of the important considerations for any trade and investment decision in other countries. One of the most significant results of globalization is the visible impact of one country’s domestic tax policies in the economy of another country. This has led to the need for continuously assessing the tax regimes of various countries and bringing about necessary reforms.

2. Double Taxation

The taxpayer resident in one country may have source of income situated in another country. It gives rise to double taxation. This arises from the two basic rules that enables the country of residence as well as the country where the source of income exists. The two rules are as follows

1. Source Rule: This rule holds that income is to be taxed in the country in which it arises irrespective of whether the income arises to resident to non-resident
2. Residence Rule: This rule holds that the power to tax should rest with the country of residence.

There will be double taxation if the both rules apply simultaneously to an assessee. Double taxation means taxing the same income twice in the hands of assessee. To take care of these situations, the Income Tax Act, 1961 has provided for double taxation relief.

3. Foreign Tax Credit

The resident assessee shall be allowed a credit for any foreign tax paid by him in a country or specified territory outside India by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax in India.

4. 📄Form 44, aka Form 67

📄Form 44, aka Form 67 is a statement or form required to be submitted by the taxpayer to claim foreign tax credit. All assessee’s who wants to take the credit of foreign tax paid in other country are required to prepare and submit 📄Form 44, aka Form 67 online along with income tax return.

As per the Income Tax Rules 2026,

1. TIN of Foreign Country made Mandatory in Form 44 (Form 67) w.e.f 01st April 2026
2. Accountant verification is required in new form if foreign tax credit is
   1. More than 1 lakh or
   2. Taxpayer is a company.

5. Preparation and submission of 📄Form 44, aka Form 67

• 📄Form 44, aka Form 67 shall be available to all the assessee’s login.
• The assessee is required to login to the income tax e filing portal using their valid credentials.
• The taxpayers need to login to the portal and go to e file > Income Tax Forms.
• The taxpayers need to enter the required details and submit the form with Aadhar OTP or EVC or Digital Signature.
• Submission of 📄Form 44, aka Form 67 shall precede filing Income Tax Return.

6. Foreign Tax Credit (FTC) Compliance – Transition from Form 67 to Form 44

Form 67 Applicability

Form 67 shall continue to be applicable up to Financial Year (FY) 2025–26 (Assessment Year 2026–27). Accordingly, taxpayers filing their Income Tax Returns (ITRs) during the year 2026 are required to furnish Form 67 for claiming Foreign Tax Credit (FTC).

Form 44 Applicability

Form 44 shall be applicable starting from Tax Year (TY) 2026–27 onwards. Taxpayers will be required to furnish Form 44 while filing their ITRs for TY 2026–27 in the year 2027.