Good news for taxpayers: Income Tax Department has given a big relief to the taxpayers. Taxpayers claiming Foreign Tax Credit (FTC) will benefit. The Central Board of Direct Taxes (CBDT) has amended the rule relating to FTC. CBDT (Central Board of Direct Taxes) has made changes in Rule 128 of the Income Tax Act, 1962.
The Finance Ministry said in a statement that now the statement in Form No. 67 can be submitted on or before the end of the relevant assessment year. Taxpayers filing Income Tax Return (ITR) within the stipulated time can claim credit for tax paid outside India till the end of the assessment year.
The Income Tax Department also made a tweet about this. It added that the details to be furnished in Form No. 67 can now be furnished till the end of the relevant tax assessment year. Till now, credit of tax deposited abroad (FTC) could be taken only if Form-67 along with the required documents was submitted within the stipulated time.
Due to this provision, the ability to claim tax for tax paid outside India would have been limited. Keeping in mind the problem of when it will be implemented , the Central Board of Direct Taxes (CBDT) has now given relief to taxpayers by changing the provisions related to claiming for FTC.
The special thing is that the CBDT has decided to implement this amendment from the retrospective date i.e. April 1, 2022. Due to this, this facility can be availed on all FTC credit claims submitted in the current financial year.
That is, it will be applicable to all claims of foreign tax credit filed during the financial year 2022-23. The last date for filing Income Tax Return (ITR) has passed last month. More than 5 crore taxpayers have filed tax returns till the last date. After that 120 days have been given to verify the ITR.
Those who file ITR on or after August 1, will have to verify ITR within 30 days. If not verified, ITR will be considered invalid and refund money will not be received.
