Foreign Interest Tax Calculator India FY 2025-26 — Free

Free calculator for tax on overseas bank interest, foreign bonds, and international fixed deposits. Built around Section 5(1) and Foreign Tax Credit relief under Section 91.

Statutory basis: Section 5(1), Section 90, Section 91, Rule 115, Rule 128, Finance Act 2025

What This Calculator Actually Does

If you're an Indian Resident (Resident and Ordinarily Resident, or ROR) and you earn interest from an overseas bank account, an international fixed deposit, or any foreign financial institution, that income is taxable in India. That's because India taxes residents on their worldwide income, not just what they earn locally. If your interest is coming from an Indian account instead, our domestic interest income tax calculator covers that case.

This tool is built specifically for Indian Residents earning foreign bank interest in FY 2025-26. It applies the correct New Regime slab rates, adds surcharge and cess where they're due, applies the Section 87A rebate if you qualify, and then works out double taxation relief under Section 90 (for DTAA countries) or Section 91 (for non-DTAA countries) so you can see what you actually owe after every credit.

If you're an NRI: under Section 5(2) of the Income Tax Act, 1961, non-residents are taxed only on income sourced in India. Foreign interest earned outside India is fully exempt for NRIs, no exceptions. This calculator will return ₹0 for every NRI case, every time.

Whether your money sits in a UK savings account, a US Treasury bond, an Australian term deposit, or a Singapore fixed deposit, the calculation logic below walks through exactly how the Indian tax is worked out.

Why People Get This Wrong

Foreign interest tax trips up even careful filers, and it's usually one of five things:

Foreign tax already paid. You may have already paid tax abroad before you even get to the Indian side of the calculation. That tax doesn't credit itself automatically; you have to actively claim it under the right relief section.

Currency conversion. Rule 115 of the Income Tax Rules, 1962 says you must use the SBI Telegraphic Transfer Buying Rate (TTBR) as it stood on the last day of the month before the month you received the income. Today's rate, your bank's rate, whatever the internet tells you the exchange rate is right now, none of that counts.

Slab rates aren't flat. The tax is progressive across multiple slabs, and surcharge plus a 4% cess sit on top. Worth comparing both regimes side by side before you assume a flat rate applies.

Section 90 vs Section 91. If India has a Double Taxation Avoidance Agreement (DTAA) with the country your interest came from, say the UK, USA, Australia, or Singapore, you claim relief under Section 90. Section 91 (unilateral relief) only kicks in when there's no DTAA at all. Mixing these two up is one of the most common filing mistakes.

The NRI misconception. A lot of NRIs assume they owe 30% Indian tax on their overseas interest. They don't. It's 0%, full stop.

How the Calculation Works

For Resident Individuals (ROR)

Step 1: Convert to INR. Convert your foreign interest using the SBI TTBR from the last day of the month before the interest was credited (Rule 115).

Step 2: Apply New Regime slabs. Your foreign interest gets added to your other total income and taxed progressively, from 0% to 30%, under the New Regime slabs (see the table below).

Step 3: Apply Section 87A rebate, if you qualify. Foreign bank interest counts as Income from Other Sources, a normal slab-rate income. If your total income is ₹12,00,000 or under, the Section 87A rebate calculator shows you the up to ₹60,000 relief that can bring your net tax down to ₹0. One thing worth flagging: this rebate does not apply to capital gains under Section 111A, 112, or 112A, but it applies in full to foreign bank interest.

Step 4: Add surcharge, if applicable. Total income above ₹50 lakh triggers surcharge on the tax amount, at 10%, 15%, or 25% depending on which band you land in under the New Regime.

Step 5: Add Health and Education Cess. A flat 4% on (tax + surcharge), applied at every income level with no threshold.

Step 6: Apply double taxation relief. Under Section 90 (DTAA) or Section 91 (no DTAA), you can claim whichever is lower: the foreign tax you paid, or the Indian tax due on that same income. That amount comes off your final payable.

For NRIs

Foreign interest income is taxed at 0% in India. Section 5(2) limits an NRI's Indian tax liability to Indian-source income only, so there's nothing to calculate here.

Using the Calculator, Step by Step

1. Select your residency status. Resident (ROR) or NRI. This single choice decides your entire tax treatment. If you're not sure which you are, check with your Chartered Accountant, residency is worked out fresh each year based on physical presence rules under Section 6 of the Income Tax Act.

2. Enter your foreign interest income in INR. Convert using the SBI TTBR under Rule 115, specifically the rate on the last day of the month before your interest was credited. Not today's rate, not the RBI reference rate, not your bank's number. Only the SBI TTBR counts here.

3. Enter foreign tax already paid. This is your total tax liability settled in the foreign country for the year, not just what was withheld at source. It can include TDS your bank withheld plus any additional tax assessed, minus refunds received.

4. Let the calculator run the numbers. It applies New Regime slabs on your total income (foreign interest included), checks Section 87A eligibility, works out surcharge if it applies, adds the 4% cess, and calculates your Foreign Tax Credit, all in one pass.

5. Review your results (Residents). You'll see base slab tax, the 87A rebate if you qualify, tax after rebate, surcharge, cess, gross Indian tax, FTC relief (capped at whichever is lower: foreign tax paid or Indian tax on that income), and your final net payable.

6. File Form 67 before your ITR. This is the step people miss most often. To actually claim FTC, you need to file Form 67 on the Income Tax e-filing portal before you file your ITR. Skip it, and your FTC claim can be rejected even if every number in your calculation is correct.

New Regime Tax Slabs, FY 2025-26 (AY 2026-27)

Surcharge and Cess Under the New Regime

Surcharge is an extra charge on your income tax amount, not on your income directly, and it only hits higher earners. Under Section 115BAC (the New Regime), surcharge tops out at 25%. That old 37% figure only applies under the Old Regime, so don't use it here. Surcharge kicks in only when total income exceeds ₹50,00,000; income of exactly ₹50 lakh is still surcharge-free.

Surcharge slabs (New Regime):

• Up to ₹50,00,000: nil
• ₹50,00,001 to ₹1,00,00,000: 10% on tax
• ₹1,00,00,001 to ₹2,00,00,000: 15% on tax
• Above ₹2,00,00,000: 25% on tax (the ceiling under the New Regime)

Health and Education Cess: 4% on (income tax + surcharge), for every taxpayer, at every income level. There's no minimum threshold; it applies from the first rupee of tax owed.

Section 90 vs Section 91: Which One Applies to You

This is where most people trip up. Which section applies depends entirely on whether India has a DTAA with the country your interest came from. Either way, your Foreign Tax Credit (FTC) is the lower of: the foreign tax you actually paid, or the Indian tax due on that same income. India has DTAAs with more than 94 countries as of 2025; the full list sits on the official Income Tax India DTAA page.

Section 90, bilateral relief (DTAA countries): applies when India has a signed DTAA with the country you earned interest in, think UK, USA, Australia, Singapore, Canada, Germany, France, UAE, Netherlands, Japan, and 80-plus others. Relief equals whichever is lower: foreign tax paid, or Indian tax on that income.

Section 91, unilateral relief (no DTAA): applies only when India has no DTAA with that country (certain African or Pacific nations, for example). India still gives credit for foreign tax paid voluntarily. Relief equals whichever is lower: the applicable foreign tax rate, or the Indian tax rate on that income.

NRIs, any country: none of this applies. Under Section 5(2), NRIs owe ₹0 Indian tax on foreign interest regardless of country, amount, or foreign tax paid.

Converting Foreign Interest to INR: Rule 115 Explained

Rule 115 of the Income Tax Rules, 1962 sets out exactly which exchange rate you're required to use when converting foreign income to INR.

The rate: the SBI Telegraphic Transfer Buying Rate (TTBR), published by the State Bank of India.

The date: the TTBR from the last day of the month immediately before the month your interest was credited.

For example: if you received USD 1,000 in bank interest on 10 July 2025, use the SBI TTBR from 30 June 2025. If you received interest on 3 August 2025, use the TTBR from 31 July 2025.

A mistake worth flagging here: a lot of people default to the RBI reference rate or "today's" exchange rate for this. Under Rule 115, only the SBI TTBR on the specified date qualifies. Save a copy of the SBI TTBR for the correct date on every transaction; the Income Tax Department can ask for it during scrutiny.

The same logic applies when converting foreign tax paid for your FTC claim under Rule 128: use the SBI TTBR from the last day of the month before the month the foreign tax was paid or deducted.

Real-Life Scenarios

1. Retired resident in the UK with a savings account

A retired Indian resident (ROR) living in the UK earns GBP interest from a UK savings account. Here's how it plays out:

• Convert GBP interest to INR using the SBI TTBR from the last day of the month before the credit date (Rule 115).
• Add that INR figure to total income and apply New Regime progressive slabs.
• If total income (interest included) is ₹12L or under, Section 87A rebate applies, net tax may land at ₹0.
• Above ₹12L, add surcharge (if income exceeds ₹50L) and the 4% cess.
• Claim FTC under Section 90, since India has a DTAA with the UK. FTC is the lower of UK tax paid or Indian tax on that income.
• File Form 67 on the Income Tax e-filing portal before the ITR.

2. Software engineer with a US bank account

An India-based software engineer holds a US bank account and earns USD interest while remaining an Indian resident. That income counts as foreign interest for Indian tax purposes.

• Convert USD interest using the SBI TTBR from the preceding month (Rule 115).
• Aggregate with other Indian income to land on the right New Regime slab.
• If combined total income is ₹12L or under, Section 87A rebate applies and net Indian tax could be ₹0.
• Above ₹12L, work out the liability with the salary tax calculator, add surcharge if income exceeds ₹50L, add 4% cess.
• Claim FTC under Section 90, since the India-US DTAA exists. FTC is capped at Indian tax on that income.
• File Form 67 before the ITR filing deadline.

3. Multi-country interest portfolio (UK, Singapore, Australia)

A resident with interest spread across GBP, SGD, and AUD accounts has to handle each currency on its own terms.

• Convert each currency to INR using the SBI TTBR for the month preceding each specific receipt date.
• Add up all foreign interest to get a total figure in INR.
• Combine with other income and calculate tax on total global income under New Regime slabs, with Section 87A rebate if total income is ₹12L or under.
• Claim FTC per country separately. All three countries here (UK, Singapore, Australia) have DTAAs with India, so Section 90 applies across the board. The full DTAA list is on the Income Tax India website.
• Total FTC across all countries can't exceed the Indian tax on total foreign interest.

4. Senior citizen with international investments

Overseas interest for senior citizens comes with a few extra compliance steps:

• Report foreign interest in Schedule FA (Foreign Assets) on the Income Tax e-filing portal.
• Report gross foreign interest under Schedule FSI (Foreign Source Income).
• Claim Section 90/91 FTC in Schedule TR (Tax Relief); this auto-populates from Schedule FSI.
• File Form 67 before the ITR due date, with documentary proof: foreign bank statements, tax certificates, and a Tax Residency Certificate (TRC) if applicable.
• Keep the SBI TTBR rate you used, along with supporting documentation from SBI's published rate tables.
• Hold onto all records for at least six years in case the Income Tax Department comes asking.

5. Business owner with foreign subsidiary accounts

An Indian business owner with foreign subsidiary accounts across multiple currencies needs to:

• Aggregate foreign interest income from every foreign account and source.
• Convert each amount individually under Rule 115, using the specific date for each.
• Treat this as part of global income taxable under Section 5(1) of the Income Tax Act.
• Calculate tax on aggregate global income (Indian plus foreign) under New Regime slabs, with surcharge and cess where they apply.
• Claim FTC country by country using Form 67. Total FTC is the sum of each country's credit, each capped at the Indian tax on income from that country.

Common Mistakes to Avoid

1. Using the wrong exchange rate. The rules require the SBI TTBR from the last day of the month before the income receipt month (Rule 115). Today's rate, the RBI reference rate, or your bank's own conversion rate can all throw off your calculation and cause problems during scrutiny.

2. Applying Section 91 when Section 90 should apply. If India has a DTAA with the country you earned interest in (UK, USA, Australia, Singapore, Canada, UAE, and 90-plus others), you must use Section 90, not Section 91. Section 91 exists purely as a fallback for countries with no DTAA. Getting this backwards leads to incorrect FTC claims.

3. Assuming foreign tax credits itself automatically. It doesn't. You have to file Form 67 on the Income Tax portal before filing your ITR. Miss it, and your FTC claim can be thrown out entirely, even if you genuinely paid tax abroad.

4. Ignoring the FTC cap. If your foreign tax paid is higher than your Indian tax liability on that income, FTC is capped at the Indian tax figure. The excess is simply forfeited; it can't be carried forward, set off elsewhere, or claimed as a deduction.

5. NRIs calculating 30% tax on overseas interest. If you're an NRI, your Indian tax on foreign interest is ₹0. Only Indian-source income is taxable for NRIs under Section 5(2).

6. Using the 37% surcharge under the New Regime. That rate belongs to the Old Regime only. Under the New Regime (Section 115BAC), surcharge caps at 25%. Using 37% overstates your liability by a wide margin. If you're unsure which regime you're even under, our Old vs New Tax Regime Calculator lays out both side by side.

7. Leaving foreign income off your ITR. All worldwide income needs declaring in your Indian ITR, even if it was fully taxed abroad. The Income Tax Department can issue scrutiny notices for undeclared foreign income, and penalties can apply even when no extra tax is actually owed.

8. Not knowing your residency status. Residency (ROR, RNOR, or NRI) is reassessed every financial year based on how much time you physically spent in India (Section 6). If you moved in or out of India during the year, check with your CA before relying on this calculator.

9. Skipping Section 87A rebate on foreign interest. Foreign bank interest is Income from Other Sources, taxed at normal slab rates. If your total income (interest included) is ₹12L or under, check your 87A eligibility: the rebate of up to ₹60,000 applies in full. This is where people commonly overpay. Just remember: it doesn't apply to gains covered by our capital gains tax calculator (Section 111A, 112, or 112A), but it does apply to foreign bank interest.

10. Applying surcharge at exactly ₹50L. Surcharge under the New Regime only kicks in once total income exceeds ₹50,00,000. Exactly ₹50,00,000 stays surcharge-free; the 10% band starts from ₹50,00,001.

Legal Basis and Statutory References

Section 5(1), Income Tax Act, 1961. The foundation of India's global income principle. Under Section 5(1)(c), a Resident and Ordinarily Resident is taxable on all income arising outside India. Every rupee of foreign bank interest is included in a Resident's total income for the year, whether or not it was ever brought into India.

Section 5(2), Income Tax Act, 1961. Non-residents are taxed only on income received or accrued in India. Foreign interest earned by an NRI in an overseas account neither accrues nor arises in India, so it doesn't meet the criteria for Indian taxability. NRI liability on foreign interest: ₹0.

Section 87A, Tax Rebate (Finance Act 2025). Resident individuals under the New Regime with total taxable income up to ₹12,00,000 get a rebate of up to ₹60,000, which can bring net tax to ₹0. Since foreign bank interest is normal slab-rate income (Income from Other Sources), this rebate applies in full. It does not apply to capital gains under Section 111A, 112, or 112A, as confirmed by the CBDT's Key Highlights of Finance Bill 2025.

Section 90, bilateral relief (DTAA countries). Applies when India has a signed DTAA with the source country. Relief equals the lower of foreign tax paid or Indian tax on that income. India has DTAAs with 94-plus countries, including the UK, USA, Australia, Singapore, Germany, Canada, UAE, Netherlands, France, and Japan. Full list on the Income Tax India website.

Section 91, unilateral relief (no DTAA). Applies when India has no DTAA with the foreign country. India allows credit for foreign tax paid regardless, calculated as the lower of the applicable foreign tax rate or the Indian tax rate on that income. It exists so residents aren't doubly taxed even without a treaty in place.

Rule 115, Income Tax Rules, 1962 (currency conversion). Sets the exchange rate for converting foreign income to INR. For interest income (Income from Other Sources), that's the SBI TTBR on the last day of the month immediately before the month the income is received or becomes due, whichever comes first.

Rule 128, Income Tax Rules, 1962 (FTC procedure). Governs how you claim FTC in India. FTC must be claimed in the same year the foreign income is offered for Indian tax. Form 67 needs filing on the e-filing portal before the ITR due date. Credit is computed separately per source, per country. Foreign tax paid gets converted using the SBI TTBR from the month before it was paid.

Finance Act 2025, New Regime slabs and key changes. Introduced the revised New Regime slab structure for FY 2025-26 (AY 2026-27): 0% up to ₹4L, 5% from ₹4L-₹8L, 10% from ₹8L-₹12L, 15% from ₹12L-₹16L, 20% from ₹16L-₹20L, 25% from ₹20L-₹24L, 30% above ₹24L. Section 87A rebate raised to ₹60,000 for income up to ₹12L, confirmed not applicable to capital gains (111A/112/112A) but fully applicable to foreign bank interest. Maximum New Regime surcharge: 25%. Cess: 4% on (tax + surcharge).

Section 115BAC, New Tax Regime. The New Tax Regime under Section 115BAC has been the default for individuals since AY 2024-25 (as amended by Finance Act 2024). Lower slab rates, but most deductions and exemptions are off the table. Resident foreign interest income is taxed under these slabs as normal income.

Section 115A, not applicable here. Section 115A covers specific income types like dividends, royalties, and technical service fees received by non-residents. Foreign bank interest earned by Indian Residents is taxed under standard New Regime slabs as Income from Other Sources, not under Section 115A.

Verified Accuracy: 14 Test Cases Passed

All 14 test cases were checked against CBDT guidelines and Finance Act 2025 provisions.

Test Case Coverage

TC1: Resident, ₹50,000 interest, ₹10,000 foreign tax. Net payable ₹0. Income sits below the ₹4,00,000 basic exemption, so slab tax is ₹0. FTC doesn't come into play, there's no Indian tax to offset.

TC2: Resident, ₹5,00,000 interest, ₹50,000 foreign tax. Net payable ₹0. Slab tax ₹5,000. Section 87A rebate ₹5,000 (income ₹5L, under the ₹12L threshold). Tax after rebate: ₹0. FTC is irrelevant here.

TC3: Resident, ₹25,00,000 interest, ₹2,50,000 foreign tax. Net payable ₹93,200. Slab tax ₹3,30,000. No 87A rebate (income above ₹12L). No surcharge (₹25L is below the ₹50L threshold). Cess at 4% = ₹13,200. Gross Indian tax ₹3,43,200. FTC ₹2,50,000 (lower of foreign tax vs Indian tax). Net: ₹93,200.

TC4: Resident, ₹1,00,000 interest, no foreign tax. Net payable ₹0. Income is below the ₹4,00,000 exemption, slab tax ₹0.

TC5: Resident, ₹10,00,000 interest, ₹50,000 foreign tax. Net payable ₹0. Slab tax ₹40,000. Section 87A rebate ₹40,000 (income ₹10L, under ₹12L). Tax after rebate: ₹0.

TC6: Resident, ₹50,00,000 interest, ₹2,50,000 foreign tax. Net payable ₹8,73,200. Slab tax ₹10,80,000. No surcharge (₹50,00,000 sits exactly at the threshold, and surcharge needs income to exceed ₹50L). Cess 4% = ₹43,200. Gross Indian tax ₹11,23,200. FTC ₹2,50,000. Net: ₹8,73,200.

TC7: Resident, ₹1,50,00,000 interest, ₹5,00,000 foreign tax. Net payable ₹43,79,680. Slab tax ₹40,80,000. 15% surcharge = ₹6,12,000 (income above ₹1Cr). Cess 4% = ₹1,87,680. Gross Indian tax ₹48,79,680. FTC ₹5,00,000. Net: ₹43,79,680.

TC8: NRI, ₹50,000 foreign bank interest, any foreign tax. Indian tax ₹0. Not taxable under Section 5(2), the source is foreign and doesn't accrue or arise in India.

TC9: NRI, ₹10,00,000 foreign bank interest, ₹50,000 foreign tax. Indian tax ₹0. Same logic under Section 5(2), regardless of amount.

TC10: NRI, ₹1,00,00,000 foreign bank interest, ₹10,00,000 foreign tax. Indian tax ₹0. Amount and foreign tax paid don't change the outcome for NRIs.

TC11: Resident, ₹4,00,000 interest (slab boundary), no foreign tax. Net payable ₹0. Income sits exactly at the top of the 0% slab, so slab tax is ₹0.

TC12: Resident, ₹4,00,001 interest, no foreign tax. Net payable ₹0. Slab tax ₹0.05 (₹1 taxed at 5%). Section 87A rebate applies, rebate is ₹0.05. Tax after rebate: ₹0.

TC13: Resident, ₹12,00,000 interest, no foreign tax. Net payable ₹0. Slab tax ₹60,000. Section 87A rebate ₹60,000 (income exactly ₹12L, fully covered). Tax after rebate: ₹0. No surcharge, ₹12L is well below ₹50L.

TC14: Resident, ₹20,00,000 interest, ₹3,00,000 foreign tax (FTC cap test). Net payable ₹0. Slab tax ₹2,00,000. No 87A rebate (income above ₹12L). Cess 4% = ₹8,000. Gross Indian tax ₹2,08,000. Foreign tax of ₹3,00,000 is higher than Indian tax of ₹2,08,000, so FTC caps at ₹2,08,000. The remaining ₹92,000 is forfeited; it can't be carried forward or refunded.

What You Get From This Calculator

• Exact Indian interest income tax liability under the New Regime FY 2025-26 slabs
• Section 87A rebate applied automatically, since foreign bank interest counts as normal income, not capital gains
• Correct Section 90 / Section 91 Foreign Tax Credit calculation (lower of foreign tax vs Indian tax on that income)
• Full surcharge impact (max 25% under the New Regime, triggered only above ₹50L) and the 4% cess
• A clear split between Resident treatment (progressive tax plus 87A rebate) and NRI treatment (₹0 tax)
• Your net amount payable to India after every credit and rebate

Frequently Asked Questions

Do NRIs pay Indian tax on foreign bank interest? 

No. Under Section 5(2) of the Income Tax Act, NRIs pay 0% Indian tax on overseas bank interest. Only Indian-source income is taxable for NRIs, foreign interest earned abroad falls completely outside Indian taxation. This calculator returns ₹0 for every NRI case.

What's the difference between Resident and NRI taxation on foreign interest? 

Residents (ROR) are taxed on global income under Section 5(1). Foreign interest is part of their taxable Indian income, taxed progressively under New Regime slabs (0-30%), with Section 87A rebate if total income is ₹12L or under, plus surcharge (up to 25% above ₹50L) and 4% cess. NRIs pay 0% on foreign-source income under Section 5(2), no Indian tax liability at all.

How is the Foreign Tax Credit (FTC) calculated? 

FTC equals the lower of foreign tax paid on the interest, or Indian tax due on that income (after 87A rebate, surcharge, and cess). Example: gross Indian tax after all calculations is ₹2,08,000, and you paid ₹50,000 in foreign tax. FTC = ₹50,000. Flip it around: if gross Indian tax is ₹2,08,000 but you paid ₹3,00,000 abroad, FTC caps at ₹2,08,000, and the extra ₹92,000 is forfeited, no refund, no carry-forward.

Which exchange rate should I use to convert foreign interest to INR?

Under Rule 115 of the Income Tax Rules, 1962, use the SBI TTBR from the last day of the month immediately before the interest was credited. Interest received in July uses the 30 June TTBR. Keep documentation of the rate and date from SBI's published rate tables for your records.

What are the FY 2025-26 tax slabs for foreign interest income for residents?

New Regime: ₹0-₹4L (0%), ₹4L-₹8L (5%), ₹8L-₹12L (10%), ₹12L-₹16L (15%), ₹16L-₹20L (20%), ₹20L-₹24L (25%), above ₹24L (30%). Section 87A rebate up to ₹60,000 for total income up to ₹12L (applies fully to foreign bank interest). Surcharge: 10% (above ₹50L to ₹1Cr), 15% (₹1Cr-₹2Cr), 25% (above ₹2Cr). Cess: 4% on tax plus surcharge.

Does the Section 87A rebate apply to foreign bank interest income? 

Yes. Foreign bank interest is Income from Other Sources, normal slab-rate income. Under Finance Act 2025, the Section 87A rebate (up to ₹60,000 for income up to ₹12L) applies to it in full. Capital gains under Section 111A, 112, and 112A are excluded from this rebate, as confirmed by CBDT, but foreign bank interest isn't. So if your total income including foreign interest is ₹12L or under, your net Indian tax can land at ₹0.

Do I need to report foreign interest in my ITR even if I paid tax abroad? 

Yes. All worldwide income has to be declared in your Indian ITR, including foreign interest. Report the gross amount in Schedule FSI, the FTC in Schedule TR, and file Form 67 before the ITR due date. Leaving foreign income off your return can trigger scrutiny notices and penalties, even when tax was fully paid abroad.

What's the difference between TDS and total foreign tax paid?

TDS is what your foreign bank withholds at source when interest is credited. Total foreign tax paid is your full settlement with that country's tax authority for the year, which can include TDS plus any additional tax assessed, minus refunds. For Form 67, you use the total tax paid to the foreign authority, not just the TDS figure.

When does surcharge apply on foreign interest income?

Only once total income exceeds ₹50,00,000. Rates: 10% for income above ₹50L up to ₹1Cr, 15% above ₹1Cr up to ₹2Cr, 25% above ₹2Cr (the New Regime ceiling). Exactly ₹50,00,000 does not attract surcharge; the threshold is strictly "exceeds ₹50L.

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