CBDT Prescribes Procedure for submission of Form 67 under IT Rule 116 relating to deduction for Foreign Tax Credit (FTC) while filing Statement/ Return of Income (ITR) by a Resident for Incomes from a Country/ Specified Territory Outside India, as under:
Procedure Form 67: CBDT (DIT Systems) Notification No. 9/2017 dt. 19 Sept. 2017
Foreign Tax Credit. -An assessee, being a resident shall be allowed a credit for the amount of 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 or assessed to tax in India, in the manner and to the extent as specified in rule 128 of the Income tax (18th amendment) rules, 2016.
As per sub-rule 9 of rule 128 the statement in Form No.67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income.
In exercise of the powers delegated by Central Board of Direct Taxes (‘Board’) under rule 12(4) of the Income tax Rules 1962, the Principal Director General of Income-tax (Systems) hereby lays down the following procedures:
1. Online filing of Form 67: All assessee’s who are required to file return of income electronically under section 139(1) as per rule 12(3) of the income tax rules 1962, are required to prepare and submit form 67 online along with the return of income if credit for the amount of any foreign tax paid by the assessee 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 or assessed to tax in India.
2. Preparation and Submission of Form 67: Form 67 shall be available to all the assessee’s login. The assessee is required to login into the e-filing portal using their valid credentials. A link for filing the Form has been provided under “e-File > Prepare and Submit Online Forms (Other than ITR)”. Select form 67 and assessment year from the drop down. Instructions to fill the form are enclosed along with the form. The completed Form 67 can be submitted by clicking on “Submit” button. Digital Signature Certificate or Electronic Verification Code is mandatory to submit Form 67.
3. Submission of Form 67 shall precede filing of return of income.
If the notification’s date is 19th Sept 2017… how can one comply with point 3 “submission of Form 67 shall precede filing of return of income” for AY 2017-18?
Submitted form 67 belatedly , but three months before 143(1) notice intimation. Demand made for both Indian and Foreign income without allowing foreign tax credit. Rectification application u/s 154 also not considered.
In fact form 67 is a pre-requisite and DTAA cannot be overridden. Our problem continuing. Can someone guide.