New Delhi: The income tax division on Friday said citizens can guarantee credit for charges paid external India before the finish of the evaluation year assuming the I-T return is filed inside the specified cutoff time.
Up to this point, Foreign Tax Credit (FTC) might have been guaranteed provided that Form – 67 alongside vital archives were filed inside the due date for filing the first return, accordingly confining the capacity to guarantee credit for tax paid external India.
The Central Board of Direct Taxes (CBDT) has altered charge Rules giving alleviation to citizens in guaranteeing Foreign Tax Credit (FTC). In a tweet, the income tax office said “the Statement in Form No. 67 can now be outfitted at the latest the finish of the applicable (Assessment) Year”. The change works reflectively, so this advantage is accessible to all FTC claims filed during the ongoing monetary year, it added.
The alteration has given truly necessary help to citizens who can now guarantee FTC by outfitting Form-67 alongside fundamental reports before the finish of the evaluation year in case the return is recorded inside the first due date or date of filing late government form, said Sachin Garg, Nangia Andersen LLP Partner-Direct Taxation.
“The FTC can now be guaranteed in any event, while filing a refreshed return of pay, gave Form – 67 is outfitted prior to documenting such return. This will positively expand simplicity of carrying on with work in India and keep citizens from losing FTC for all time if Form – 67 isn’t filed inside the due date of filing return of pay,” Garg added.
AKM Global Head of Tax Markets, Yeeshu Sehgal said this unwinding in filing Form-67 till the finish of the evaluation year rather than before the due date of filing the return is a help to the citizens as they can guarantee FTC after filing the return too.
“This will likewise prompt the decrease in tax debates relating to FTCs since there have been unique translations on the suitability of FTC in case of late and non-filing of Form 67 at present as expense rules notice no ramifications for non-filing of such form,” Sehgal added.
