Form 67 Calculator: Foreign Tax Credit India (FY 2025-26)

If you've paid tax abroad on income that's also taxed in India, a Form 67 calculator helps you work out exactly how much of that foreign tax you can claim back as a credit against your Indian tax bill — before you file Form 67 itself. This is the step most people get wrong in NRI and resident-with-foreign-income tax filing. Get the number wrong and you either lose a legitimate credit or trigger a mismatch notice later.

What Is a Form 67 Calculator?

A Form 67 calculator computes your Foreign Tax Credit (FTC) — the amount of foreign tax you can set off against your Indian income-tax liability on the same income. Resident Indians with overseas salary, freelance, dividend, or interest income use it. So do NRIs who've returned and still hold foreign investments, and CAs preparing FTC workings before submitting Form 67 on the e-filing portal. The calculator doesn't file the form for you — it gives you the exact credit figure to enter, checked against Rule 128.

Form 67 Calculator Formula (as per Section 90/91, Income Tax Act 1961 & Rule 128)

Under Rule 128 of the Income-tax Rules, 1962, you compute the Foreign Tax Credit separately for each source of income and each country. The credit is capped at the lower of the two figures below:

Indian tax attributable to foreign income = Total Indian tax payable × (Foreign income ÷ Total taxable income)

Foreign Tax Credit (FTC) = MIN( Foreign tax paid abroad, Indian tax attributable to foreign income )

Relief comes from Section 90 of the Income Tax Act, 1961 where India has a Double Taxation Avoidance Agreement (DTAA) with the source country, and from Section 91 where no DTAA exists. Either way, the same ceiling applies: India never refunds foreign tax in excess of your Indian tax liability on that income. Convert foreign currency using the Telegraphic Transfer Buying Rate (TTBR) of the last day of the month preceding the month of payment — Rule 128 requires this exact method. This calculator uses the standard average-rate method (also how Schedule FSI/TR in the ITR utility computes "tax payable in India" on foreign income): total tax divided by total income, multiplied by foreign income. [VERIFY: Rule 128(3) allows the credit to be set off against cess as well as tax, but neither the rule text nor the ITR schedule instructions spell out whether the "total Indian tax payable" figure used in this ratio should be pre-cess or include cess. This calculator uses the pre-cess figure, matching common practitioner practice — get this confirmed for your own return if the amounts are large.]

How This Calculator Works

1. Enter your total taxable income — every source of income for the year, combined, before deductions relevant to FTC.
2. Enter the foreign-source income already included in that total. This isolates the slice of income Rule 128 applies to.
3. Enter your total Indian tax payable on the whole income, before health and education cess, as computed on your ITR.
4. Enter the foreign tax actually paid or deducted abroad, converted to INR using the TTBR method.
5. The calculator applies the Rule 128 ratio to find the Indian tax attributable to your foreign income, then caps your credit at the lower of that figure and the foreign tax paid.
6. It shows your final allowable FTC instantly, with a note on whether your credit was capped.

Step-by-Step Example Calculation

Priya, a Pune-based consultant, earned ₹18,00,000 in total taxable income for FY 2025-26. Of this, ₹4,00,000 came from consulting fees paid by a UK client. UK withheld tax equivalent to ₹68,000, converted at TTBR. Her total Indian tax payable on the full ₹18,00,000, before cess, works out to ₹3,12,000.

• Step 1: Indian tax attributable to foreign income = ₹3,12,000 × (₹4,00,000 ÷ ₹18,00,000) = ₹69,333
• Step 2: Compare foreign tax paid (₹68,000) with the attributable Indian tax (₹69,333)
• Step 3: FTC = MIN(₹68,000, ₹69,333) = ₹68,000

Priya claims the full ₹68,000 as Foreign Tax Credit in Form 67, since it's lower than the Indian tax attributable to that income. Had the UK withheld ₹75,000 instead, her credit would have been capped at ₹69,333. She'd lose the extra ₹5,667 outright — Section 90/91 doesn't refund or carry it forward.

Who Should Use Form 67 Calculator

• NRIs and returning NRIs still hold foreign salary, RSU, or investment income taxable in India, and need this ratio worked out before filing.
• Freelancers and consultants billing overseas clients can pair this with our payments from abroad tax calculator to check the underlying tax first.
• Resident Indians with foreign dividend or interest income should also check the foreign dividend tax calculator or foreign interest income tax calculator for the full picture.
• CAs and tax professionals preparing FTC workpapers for multiple clients use this to move faster before the Form 67 deadline.
• Traders and investors with foreign brokerage accounts subject to withholding tax overseas need the same source-by-source computation.

Latest Rules You Should Know (2026)

For income earned up to 31 March 2026 (FY 2025-26, AY 2026-27), the old Income Tax Act, 1961 still governs your FTC claim — Sections 90, 90A, and 91, along with Rule 128. The Income Tax Act, 2025 takes over from FY 2026-27 onward and may renumber several sections, so don't assume next year's section numbers will match this year's. Some tax-practice commentary reports that Form 67 itself may be renumbered as "Form 44" under the new Act. [VERIFY: I couldn't confirm this on the official e-filing portal or through a CBDT notification — treat it as unconfirmed until the portal or a government circular says otherwise.]

For your AY 2026-27 return, file Form 67 on or before 31 March 2027 — the end of the assessment year — provided you filed your ITR within the Section 139(1) or 139(4) deadlines. File Form 67 late and you lose the credit outright; there's no automatic condonation. Before finalising your DTAA-based claim, check how the specific Double Taxation Avoidance Agreement (DTAA) with your country actually applies — Section 90 relief depends entirely on the treaty's terms.

Common Mistakes People Make

• People file Form 67 after the assessment year ends. The credit is denied outright, even if you're a day late.
• People use the wrong exchange rate. Convert at the TTBR of the preceding month-end, not the payment date's spot rate — Rule 128 is specific about this.
• People claim the full foreign tax paid without running the "lower of" comparison. That overclaim gets flagged during processing.
• People blend income categories together. Compute FTC source-by-source and country-by-country, not as one number.
• People forget the foreign tax certificate. Without a certificate or statement from the foreign tax authority or deductor, expect the claim rejected on scrutiny.
• People assume Section 90 applies without checking the treaty text. If the specific DTAA article has no FTC clause, you may need to fall back on Section 91 instead.

FAQs

How is Form 67 foreign tax credit calculated in India? You calculate FTC separately for each foreign income source, as the lower of the actual foreign tax paid or the Indian tax attributable to that income — using the ratio of foreign income to total taxable income under Rule 128.

What is the last date to file Form 67 for AY 2026-27? File Form 67 on or before 31 March 2027, the end of the assessment year, provided you filed your original or belated income tax return within the Section 139(1)/139(4) deadline.

Can I claim FTC without a DTAA with the foreign country? Yes. If India has no DTAA with that country, Section 91 gives you unilateral relief, calculated the same way: the lower of the Indian or foreign tax on the doubly taxed income.

Does Form 67 need to be filed before or after the ITR? File Form 67 before or along with your income tax return, and in any case no later than the end of the relevant assessment year, to stay eligible for the credit.

What exchange rate should I use to convert foreign tax paid? Use the Telegraphic Transfer Buying Rate (TTBR) of the last day of the month immediately before the month in which you actually paid or had the foreign tax deducted — that's what Rule 128 sets out.

Can unused foreign tax credit be carried forward? No. Under Sections 90 and 91, any foreign tax paid in excess of the Indian tax attributable to that income simply lapses. You can't refund it or carry it to a future year.

Is FTC available if I pay tax under the new regime? Yes. FTC is available under both the old and new tax regimes, as long as you've offered the underlying foreign income to tax in India and filed Form 67 correctly.

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