CBDT modifies IT Rule 128(9) to provide significant relief to Indian taxpayers regarding Foreign Tax Credit (FTC) claims by extending the deadline for filing Statement in Form No. 67.
FTC claims can now be filed on or before the end of the relevant Assessment Year or the deadline to file a belated return (i.e. by 31/03/2023 for FTC relating to FY 2021-22) or at the time of filing an updated return, as opposed to the previous requirement of filing FTC claims by the ITR due date, as per Notification 100/2022 dt. 18/08/2022.
This amendment is applicable w.r.e.f. 01/04/2022 so that this relaxation benefit is available to all FTC claims filed during the current Financial Year.
Previously, IT Rule 128(9) required the submission of prescribed documents for claiming FTC on or before the due date for ITR filing, which caused practical problems for many Indian residents. As a result, IT Rule 128(9) has been amended to allow for the extension of the time limit for filing the prescribed documents for claiming FTC beyond the due date for ITR filing, up to one year from the end of the relevant fiscal year in which the income is offered for tax, subject to the condition that the ITR for such financial year has been furnished within the specified time limit for filing the original or belated return.
Furthermore, amended IT Rule 128(9) allows for the filing of updated FTC claim documents in relation to additional income disclosed in the updated ITR, in accordance with new income tax provisions introduced by the Finance Act of 2022.
CBDT Income Tax Notification 100/2022 dt. 18/08/2022: IT Rule 128(9) Amended to relax timeline for filing Form 67 (FTC Claims) including for Belated/ Updated ITR