January 15, 2026

Form 67 Filing for Foreign Tax Credit: ITAT Confirms DTAA Relief Cannot Be Denied for Procedural Delay

With globalization, a growing number of Indian residents and NRIs earn income abroad. Salaries from overseas employment, foreign investments, and international business interests often lead to double taxation — income taxed both in India and another country.

To prevent this, India has entered into Double Taxation Avoidance Agreements (DTAA) with multiple countries. However, claiming Foreign Tax Credit (FTC) in Indian ITR filing requires procedural compliance — especially filing Form 67 and Form 10F.

A recent ITAT Delhi ruling in DCIT vs. Malvinder Mohan Singh (AY 2017–18) has provided crucial clarity:
DTAA relief cannot be denied merely due to alleged delay in filing Form 67 if filed within permissible time.

This decision has significant implications for NRI taxation, foreign income reporting, and Indian ITR compliance.

What is Form 67 in Indian ITR Filing?

Form 67 is a mandatory declaration required when claiming Foreign Tax Credit (FTC) under:

Section 90 (DTAA relief)
Section 91 (unilateral relief)

It must be filed online on the income tax portal before submitting the Indian ITR. Form 67 contains:

Details of foreign income
Country of source
Tax paid abroad
Corresponding income offered to tax in India

Without Form 67, the Income Tax Department may deny FTC — resulting in double taxation.

What is Form 10F and Why is it Important?

Form 10F is required when claiming DTAA benefits where a Tax Residency Certificate (TRC) does not contain all prescribed details.

It captures:

Taxpayer’s nationality
Tax identification number of foreign country
Period of residency
Address in the foreign country

For NRIs and foreign companies receiving income from India, Form 10F + TRC is essential to:

Claim DTAA lower tax rates
Avoid excess TDS
Ensure correct withholding compliance

Key Issue: Can FTC be Denied if Form 67 is Filed Late?

This has been a frequent litigation issue. Many taxpayers:

File Form 67 after ITR submission
File during revised return
File before completion of assessment

Tax officers often disallow FTC citing Rule 128, claiming Form 67 must be filed before due date u/s 139(1).

ITAT Delhi Judgment: Relief for Taxpayers

Case: DCIT vs. Malvinder Mohan Singh (AY 2017–18)

Facts:

Assessee declared ₹26.80 crore income.
Earned salary income in Singapore.
Paid tax in Singapore and claimed DTAA relief in Indian ITR.
Filed Form 67 on 22.12.2017.
AO denied FTC of ₹23.02 lakh alleging Form 67 not filed before due date.

ITAT Ruling:

Form 67 was filed before the last date of belated return u/s 139(4).
Revised return was also filed within time.
Full foreign income and tax details were disclosed in Schedule FSI and Schedule TY.
Denial of FTC would cause double taxation, contrary to DTAA intent.

Held: Foreign Tax Credit must be allowed. Procedural delay cannot override substantive DTAA relief.

Disclosure of Foreign Assets Also Upheld

In the same case, AO treated foreign investments of ₹3.31 crore as unexplained.

However, ITAT noted:

Investments were disclosed in Schedule FA (Foreign Assets).
Income of minor daughters was duly clubbed.
Sufficient declared income existed to justify investments.

Proper disclosure in Schedule FA protects against unexplained investment additions.

Key Takeaways for Taxpayers & NRIs

Always disclose foreign assets in Schedule FA
Report foreign income in Schedule FSI
Claim FTC in Schedule TY
File Form 67 before or at least along with belated / revised return
Maintain proof of foreign tax payment
Use Form 10F + TRC when claiming DTAA withholding benefits

Practical Impact on Indian ITR Filing

This judgment brings relief to:

NRI returning to India
Expatriates working abroad
Global executives with foreign salary
Investors with overseas income

It confirms that substantive DTAA relief prevails over minor procedural lapses — provided disclosures are complete and taxes are genuinely paid overseas.

How Dinesh Aarjav & Associates Can Help

At Dinesh Aarjav & Associates, we specialize in:

NRI Taxation & DTAA Consultancy
Form 67 and Form 10F Filing
Foreign Tax Credit computation
Indian ITR filing with foreign income
Schedule FA / FSI / TY compliance
Cross-border NRI tax planning (India–USA, India–Canada, India–UK, India–UAE)

With 25+ years of experience and offices across India and overseas, we ensure:

Zero double taxation
Full compliance
Optimized tax outcomes

Conclusion

The ITAT ruling reaffirms a taxpayer-friendly principle:
DTAA relief and Foreign Tax Credit cannot be denied due to minor procedural delays if genuine taxes are paid and disclosures are complete.

However, proactive compliance with Form 67, Form 10F, and foreign asset reporting remains critical to avoid disputes.