India Tax Deadline: Foreign Tax Credit Claims for FY 2024–25 Due by March 31, 2026

Indian taxpayers earning foreign income must file Form 67 by March 31, 2026 to claim foreign tax credit for FY 2024–25. Learn who must file and how to comply.

Taxpayers earning income outside India must take note of an important compliance deadline: March 31, 2026, is the final date to submit Form 67 to claim a Foreign Tax Credit (FTC) for taxes paid overseas on income earned during the previous year 2024–25.

Find Business Support

Operating Across Borders? Protect Your Foreign Tax Credit Eligibility

Filing Form 67 (sections 90/90A/91) is a mandatory requirement for Indian residents seeking relief from double taxation under India’s network of Double Taxation Avoidance Agreements (DTAAs) or under unilateral relief provisions of the Income-tax Act, 1961. Failure to file the form on time may lead to denial of the credit, potentially increasing the taxpayer’s overall tax liability in India.

Also Read: Claiming Foreign Tax Credit in India: Step-by-Step Guide to Form 67 Compliance

What is Form 67?

Form 67 is a declaration submitted electronically through the Income Tax Department’s e-filing portal. It provides details of:

• Foreign income offered to tax in India
• Foreign taxes paid or deducted on that income
• The jurisdiction where the tax was paid
• Applicable treaty provisions under a DTAA

The form must be submitted before filing the income tax return (ITR) for the relevant assessment year or before the end of the assessment year, whichever is earlier. For income earned during FY 2024–25 (Assessment Year 2025–26), the final deadline falls on March 31, 2026.

Why the deadline matters

The foreign tax credit mechanism is designed to prevent the same income from being taxed in multiple jurisdictions. Indian residents, including individuals, companies, and other entities, must declare their global income in India if they qualify as tax residents. When that income is also taxed abroad, FTC provisions allow taxpayers to offset the foreign tax paid against their Indian tax liability.

However, the credit is not automatic. Form 67 acts as the supporting declaration, enabling the Indian tax authorities to verify the foreign tax paid and the corresponding income.

Missing the filing deadline can have significant consequences. Without Form 67:

• The Income Tax Department may disallow the foreign tax credit claim.
• Taxpayers may face higher effective taxation on cross-border income.
• Additional interest or penalties could arise if tax liabilities are reassessed.

Who should file Form 67?

Form 67 must be filed by Indian tax residents who have earned income abroad and paid tax in another country. This commonly applies to:

• Indian companies with overseas operations or subsidiaries
• Employees working abroad or receiving foreign employment income
• Professionals providing services to overseas clients
• Investors earning foreign dividends, interest, or capital gains
• Multinational enterprises reporting cross-border income streams

The form is also relevant to businesses operating through permanent establishments (PEs) in foreign jurisdictions or receiving royalty, technical service fees, or consulting income from overseas markets.

Information required to file Form 67

Taxpayers preparing to file the declaration should gather documentation that supports the foreign tax credit claim, including:

• Details of foreign income earned
• Tax payment proof issued by foreign authorities
• Tax residency documentation if required
• Relevant DTAA provisions governing the tax treatment
• Currency conversion details used to report foreign income in INR

Accurate reporting is important because the credit available in India cannot exceed the amount of tax payable in India on the same income.

Also Read: Significance of the Tax Residency Certificate in India

Compliance considerations for businesses

Find Business Support

We provide integrated tax, accounting, and legal advisory. Learn how our experts can help.

For multinational companies and cross-border investors, the Form 67 requirement is a key part of managing international tax exposure. Companies should ensure that finance teams and tax advisors coordinate early to compile documentation from overseas jurisdictions.

Businesses with operations across multiple countries may also need to align transfer pricing documentation, withholding tax records, and foreign subsidiary tax filings to ensure consistency in reported income and taxes paid abroad.

Given the complexity of global tax reporting, companies often conduct a year-end tax review before the March deadline to confirm eligibility for foreign tax credits and avoid compliance risks.

Preparing for the deadline

With the March 31, 2026 deadline approaching, taxpayers should verify that:

• All foreign income for FY 2024–25 has been correctly reported in India.
• Taxes paid overseas are supported by appropriate documentation.
• Form 67 is uploaded through the Income Tax Department’s e-filing portal before the assessment year closes.

Timely compliance ensures taxpayers can fully benefit from India’s tax treaty network while avoiding double taxation on global income.

Managing tax in India is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.

Divyansh Shrivastava

Assistant Manager

Talk to an expert at India@dezshira.com

Or request a consultation at +91 0124 4001785 ext. 202

• Previous Article India to Roll Out New Income Tax Act from April 1 with Simplified Compliance Framework
• Next Article