A free FTC calculator India US for Indian residents with US salary, dividend, RSU, or capital gains income, showing the exact Rule 128 credit computation.
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.
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.
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.
Suppose Rohan, a resident Indian, has US-source dividend income alongside his regular salary.
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.
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 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.
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.
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.
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).
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.
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.
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.
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.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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