Form 67: The overlooked compliance step shielding NRIs from double taxation

A Reddit user recently shared how a little-known tax compliance requirement in India — Form 67 — helped them save lakhs after moving back from the US.

Recounting their experience, the user said that while they had taken care of closing their apartment lease, shipping belongings, and even tracking RSUs and 401(k) contributions, they were caught off guard during their first year of tax filing in India.

Their RSU income, which had already been taxed in the US, showed up again in India’s tax computation — leading to a situation where the same income was being taxed twice. “I honestly thought the DTAA treaty would automatically save me, but nope it doesn’t work like that. Unless you file Form 67 before your ITR, India won’t give you credit for the tax you already paid in the US,” the post read.

The user described the shock of facing a tax return that would “eat up months of salary,” until they learned about Form 67 just before the filing deadline. Filing it ensured they received credit for taxes already paid abroad, preventing double taxation.

Calling it a “hidden compliance step,” the post urged others in similar situations not to ignore Form 67. “It might look like just another boring formality, but it’s the only thing standing between you and double taxation,” the Redditor wrote.

Form 67: Key FAQs for Taxpayers

• When to to file Form 67: You must submit Form 67 if you want to claim credit for foreign taxes paid in another country or specified territory. It is also required if you are carrying back a loss of the current year that results in a refund of foreign tax for which credit was claimed in earlier years.
• How to file Form 67: Form 67 can only be submitted online through the Income Tax e-Filing portal. Simply log in, select Form 67, fill it out, and submit.
• E-verify Form 67: The form can be e-verified using Aadhaar OTP, EVC, or DSC. For detailed steps, you can refer to the e-Verify user manual on the portal.
• Requirement of CA certificate: No. It is not mandatory to obtain a Chartered Accountant’s certificate to validate the details of the foreign tax credit claimed.
• Deadline for filing Form 67: The form must be filed before the due date of filing your Income Tax Return (ITR) under Section 139(1).