New Delhi:

The source of revenue tax division on Friday stated taxpayers can declare credit score for taxes paid out of doors India prior to the tip of the evaluation yr if the I-T go back is filed throughout the stipulated time limit.

So some distance, Foreign Tax Credit (FTC) will have been claimed provided that Form- 67 together with important paperwork have been filed throughout the due date for submitting the unique go back, thereby proscribing the facility to say credit score for taxes paid out of doors India.

The Central Board of Direct Taxes (CBDT) has amended tax Rules offering aid to taxpayers in claiming Foreign Tax Credit (FTC).

In a tweet, the source of revenue tax division stated “the Statement in Form No. 67 can now be furnished on or prior to the tip of the related Asstt Year”.

The modification operates retrospectively, so this get advantages is to be had to all FTC claims filed all the way through the present monetary yr, it added.

Nangia Andersen LLP Partner- Direct Taxation, Sachin Garg stated the modification has supplied much-needed aid to taxpayers who can now declare FTC through furnishing Form- 67 together with important paperwork prior to the tip of the evaluation yr if the go back is filed throughout the authentic due date or date of submitting belated tax go back.

“The FTC can now be claimed even if submitting an up to date go back of source of revenue, supplied Form 67 is furnished prior to submitting such go back. This will indubitably increase ease of doing industry in India and save you taxpayers from shedding FTC completely if Form 67 isn’t filed throughout the due date of submitting go back of source of revenue,” Mr Garg stated.

AKM Global Head of Tax Markets Yeeshu Sehgal stated this rest in submitting Form-67 until the tip of the evaluation yr as a substitute of prior to the due date of submitting the go back is a aid to the taxpayers as they are able to declare FTC after submitting the go back as smartly.

“This may also result in relief in tax disputes referring to FTCs since there were divergent interpretations at the allowability of FTC in case of belated and non-filing of Form 67 at this time as tax regulations don’t point out any penalties for non-filing of such shape,” Mr Sehgal added.

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