Use this FTC calculator India US to work out how much Foreign Tax Credit you can claim in your Indian income-tax return against tax already paid in the USA — in seconds, with the exact Rule 128 formula.

What Is FTC Calculator India US?

The FTC calculator India US helps Indian residents who earn salary, dividends, interest, or capital gains from the USA figure out how much credit they get in India for the tax already deducted there. It's built for NRIs returning to India, resident Indians with US stock/RSU income, freelancers billing US clients, and traders holding US brokerage accounts who need to avoid paying tax twice on the same income.

FTC Calculator India US Formula (as per Rule 128, Income-tax Rules, 1962)

Foreign Tax Credit under Rule 128, read with Section 90 of the Income-tax Act, 1961 (since India has a DTAA with the USA), is the lower of two amounts:

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

Foreign Tax Credit (FTC) = MIN( Indian tax attributable to US income , US tax actually paid )

Any US tax paid over and above the Indian-tax-attributable amount is not creditable and cannot be carried forward under Rule 128 (except in specific MAT/AMT situations). US tax must be converted to INR at the Telegraphic Transfer Buying Rate on the last day of the month before the tax was paid or deducted.

How This Calculator Works

1. Enter your total taxable income in India for the financial year (all sources combined).
2. Enter the total Indian income tax payable on that income, including cess.
3. Enter the US-source income (converted to INR) that's already included in your total income above.
4. Enter the US tax paid on that specific income, also converted to INR.
5. The calculator computes the Indian tax proportionately attributable to your US income, compares it with the US tax paid, and shows the lower figure as your allowed Foreign Tax Credit — along with any excess US tax you can't claim back.

Step-by-Step Example Calculation

Suppose Rohan, a resident Indian, has US-source dividend income alongside his regular salary.

• Total taxable income in India: ₹18,00,000
• Total Indian tax payable (incl. cess): ₹3,12,000
• US-source dividend income (converted to INR): ₹2,00,000
• US tax withheld on this dividend (converted to INR): ₹50,000

Step 1 — Indian tax attributable to US income: ₹2,00,000 ÷ ₹18,00,000 × ₹3,12,000 = ₹34,667

Step 2 — Compare with US tax paid: US tax paid = ₹50,000; Indian tax attributable = ₹34,667

Step 3 — FTC allowed = lower of the two = ₹34,667

Step 4 — Excess US tax not creditable = ₹50,000 − ₹34,667 = ₹15,333 (this amount cannot be claimed as a refund or carried forward)

Rohan can claim ₹34,667 as Foreign Tax Credit against his Indian tax liability while filing Form 67.

Who Should Use FTC Calculator India US

• NRIs and returning NRIs with US salary, rental, or investment income now taxable in India
• Resident Indians holding US stocks or RSUs who've had dividend or capital gains tax withheld in the USA
• Freelancers and consultants billing US clients where US withholding tax applies
• Traders and investors with US brokerage accounts subject to US tax on certain income
• CAs and tax professionals preparing Form 67 and Schedule TR for clients with US income

Latest Rules You Should Know (2026)

Form 67 must be filed before your FTC claim is processed. Under CBDT Notification No. 100/2022, which amended Rule 128(9) with effect from 1 April 2022, Form 67 can be filed on or before the end of the relevant assessment year — not just by the ITR due date — provided you've filed your return within the time allowed under Section 139(1) or 139(4). For FY 2025-26 income (AY 2026-27), that pushes your Form 67 deadline to 31 March 2027.

Two changes are on the horizon for FY 2026-27 income onward: reports point to Form 67 being replaced by Form 44 once the Income-tax Act, 2025 takes over, and draft rules floated in February 2026 propose mandatory CA verification for FTC claims above ₹1 lakh. Neither is finally notified as of this writing — [VERIFY] against incometax.gov.in before relying on either. For the full Form 67 timeline, see this Form 67 filing guide. If you're separately tracking foreign assets disclosure thresholds alongside your FTC claim, see this guide on the foreign assets penalty exemption limit.

Common Mistakes People Make

• Claiming FTC on the entire US tax paid instead of restricting it to the Indian-tax-attributable portion under Rule 128
• Forgetting to convert US tax to INR at the TT buying rate and instead using the average or card rate
• Missing Form 67 filing entirely — without it, the FTC claim can be denied even if the tax was genuinely paid abroad
• Assuming excess US tax (over the Indian tax attributable) is refundable or can be carried forward — it cannot, under Rule 128
• Not maintaining a foreign tax payment certificate or TRC as documentary proof when the claim is scrutinised
• Mixing up FTC computation with the separate foreign dividend income tax computation itself — FTC is the credit after Indian tax is worked out, not a substitute for it

FAQs

Is FTC on US income calculated under Section 90 or Section 91? 

Since India has a DTAA with the USA, FTC is claimed under Section 90 of the Income-tax Act, 1961, along with Rule 128. Section 91 applies only where India has no tax treaty with the source country.

Can I claim more FTC than the Indian tax on my US income?

No. Rule 128 caps the credit at whichever is lower — the Indian tax attributable to that income or the actual US tax paid. Any excess is not refundable.

What exchange rate should I use for US tax paid? 

Use the Telegraphic Transfer Buying Rate (TTBR) on the last day of the month immediately before the month in which the US tax was paid or deducted, as prescribed under Rule 128(5)(ii).

Do I need a Tax Residency Certificate to claim FTC on US income? 

Yes, when claiming under the DTAA (Section 90), a Tax Residency Certificate along with Form 10F is typically required as documentary support, in addition to Form 67.

Is Form 67 compulsory for claiming FTC? 

Yes. Without filing Form 67 with the required statement of foreign income and tax paid, the FTC claim can be disallowed by the tax department, even if the underlying tax was genuinely paid in the USA.

Does this calculator also work for US capital gains or interest income? 

Yes — the Rule 128 "lower of" formula applies the same way regardless of income type (dividend, interest, salary, or capital gains). Just enter the correct US-source income and US tax paid for that category.

What's the difference between Form 67 and Form 44? 

Form 67 is the current form for FTC claims under the Income-tax Act, 1961, covering income up to FY 2025-26. Reports suggest Form 44 will replace it for income from FY 2026-27 under the new Income-tax Act, 2025 — confirm this on the e-filing portal before that assessment year, since it isn't finally notified yet.

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