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Monday, February 6, 2023

Income Tax Department Amends Rules; Taxpayers Claiming Foreign Tax Credit To Benefit More

The Income Tax Department has given a big relief to the taxpayers. Taxpayers claiming Foreign Tax Credit (FTC) will benefit.

The Central Board of Direct Taxes (CBDT) has amended the rule relating to FTC. CBDT (Central Board of Direct Taxes) has made changes in Rule 128 of the Income Tax Act, 1962.

In a statement, the Finance Ministry said that now the statement in Form No. 67 can be submitted on or before the end of the relevant assessment year. Taxpayers filing Income Tax Return (ITR) within the stipulated time can claim credit for tax paid outside India till the end of the assessment year.

The Income Tax Department also made a tweet about this. It added that the details to be furnished in Form No. 67 can now be furnished till the end of the relevant tax assessment year.

Till now, credit of tax deposited abroad (FTC) could be taken only if Form-67 along with the required documents was submitted within the stipulated time.

The CBDT has decided to implement this amendment from the retrospective date i.e. April 1, 2022. Due to this, this facility can be availed on all FTC credit claims submitted in the current financial year. It will be applicable to all claims of foreign tax credit filed during the financial year 2022-23.

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