Overview
The Central Board of Direct Taxes has published a notification dated 18.08.2022 wherein they have amended the time limit within which Form 67 shall be filed on Income Tax e-Filing Portal effective from 1st April, 2022.
What is Form 67?
As per Rule 128 of the Income Tax Rules, 1962, a resident taxpayer is eligible to claim credit for any foreign tax paid, in a country or specified territory outside India. The credit shall be allowed only if the Assessee furnishes the required particulars in Form 67 within the specified timelines. Form 67 will also be required to be furnished in a case where the carry backward of loss of the current year results in refund of foreign tax for which credit has been claimed in any previous years.
Specified Timelines
| Previously | Amended |
| A resident taxpayer will be required to furnish the statement in Form 67 on or before the due date specified for furnishing the return of income under sub-section (1) of Section 139 to claim credit of such taxes. | 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 end of the assessment year relevant to the previous year in which the income referred to in sub-rule (1) has been offered to tax or assessed to tax in India section 139 of the Act. |
Provided that where the return has been furnished under sub-section (8A) of section 139 (Updated Return), 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) to the extent it relates to the income included in the updated return, shall be furnished on or before the date on which such return is furnished.”
Though the extended timelines are a welcome relief, but if one may think closely, this can be a reason for
delay in processing of return of income filed, where Form 67 is filed as per the extended time lines. Now,
consequentially, will such delay in procession due to filing of Form 67 will alter taxpayer’s position to claim interest on refund, is an issue which needs clarification.
