Form67 I Why and How to file Form 67 to Claim Foreign Tax Credit | DTAA | Reduce tax burden
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- Опубліковано 17 жов 2024
- If Indian resident have received foreign income, then he/she are liable to pay tax at source country and resident country as well. This video will help them to understand the income tax provision on DTAA and requirement of filing the From67 for claiming tax credit from your resident country. A detailed explanation and calculations are provided with example to calculate the data (global income, tax on global income, average tax rate, conversion of foreign currency and tax under normal provision) for filing Form67. Also step by step process has been described to file Form67.
Note: To get tax credit, Form67 should file before Income Tax Return (ITR)
ITR 2 filing with Foreign Assets declaration + Capital Gain + Foreign source Income
• ITR2 Filing with Forei...
Link of Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia...
Link of Income Tax site for Article number of nature of income of respective country as per DTAA agreement: incometaxindia...
#form67 #ForeignTaxCredit #ForeignTax #ForeignIncome #foreigninvestment #Nama_CA
#Nama #Namma_CA #CANamrta #NamaCA #NammaCA #CA_Namrta
For Tax filing services, you can reach out to agrawalnamrtaandassociates@gmail.com
ITR 2 filing with Schedule FA + Foreign Income + Capital Gain
ua-cam.com/video/6wbp9s249z8/v-deo.html)
Link of Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia.com/sbi-bank-forex-rates-30-12-2022/
Link of Income Tax site for Article number of nature of income of respective country as per DTAA agreement: incometaxindia.gov.in/pages/international-taxation/dtaa.aspx
Thank you mam for your detailed explanation with example
Too good madam Thanks a lot it was really helpful in filing ITR . God bless you always for such good work.
It's my pleasure. ITR filing video link is in description.
Hi Ma'am, thanks for the informative video. I understand that we need to consider Jan-Dec for foreign dividend. Can you please guide on how to show the quarterly breakup in Schedule other sources of income- should we show the entire calendar year income in Dec'23 quarter as Form-1042S is for the entire year? Or do we need to show Jan-Mar'23 dividend in the April-June quarter (before 15/6)?
Link of Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia.com/sbi-bank-forex-rates-30-12-2022/
Link of Income Tax site for Article number of nature of income of respective country as per DTAA agreement: incometaxindia.gov.in/pages/international-taxation/dtaa.aspx
There you go 👍🏻
Many thanks, Madam ... Excellent video ... Very helpful and easy to understand complex topics like this
very useful video mam . i was going through all over youtube and finally got this one where everything is explained clearly . I have question though. Is it mandatory to file 67 ? Or is it need to be filed only if you want to claim this benefit. Cause in my case , I just stayed only 2 weeks in March in US in 2023. As its a small amount that I get as tax relief , I would like to avoid filing 67. Anyways this is the best video that explained well on form 67 . Looking forward to your video on ITR2
Thank you for Feedback. It means a lot. It is not mandatory to file form 67. You can skip if you don't want to claim the rebate. As your earning is in 2023, you will be eligible to claim the amount next year. Because as per income tax act, assessee need to file the foreign income and holding as per Source country (US ) financial year. Ans US financial year goes Jan to Dec.
@@Nama_CA thank you for the clarification
I have seen many people filled rate as per IT act - (as per the tax slab like for 30% tax slab 31.2%), which one is correct 15% calculation (does this calculation still valid) ?
Very well explained
How to deal with the financial year conflict for example dividend received in USA.
We declare dividend received in USA Apr 2023-Mar 2024.
But the certificate 2042-S is provided for Jan-Dec 2023.
So the tax entry in form 67 for AY-2024-25 and Jan-Mar 2024 2042-S Jan - Dec 2023 wouldn't be there
Thank you
And in India for foreign income we will also follow calendar year (jan- dec) so dividend received in jan feb n march of 2024 will not require to show in fy 23-24, that we need to declare in next fy.
@@Nama_CA thank you for clarifying.
Mam on continuation what if it is a capital gain instead of dividend. Still we don't need to show it in ITR 2 for 23-24?. Please clarify
While computing global income.. should we also include capital gains income along with dividend to derive average rate of tax...??
Very nice explanation with example of conversion rate. But TTB on 30/11/2022 is 80.89 and you used 81. Is it the roundoff of 80.89?
Please suggest.
Hi Ma’am your video’s are very informative. Thank you for the hard work. However I have 2 questions
a. Do we calculate dividend income from foreign sources on the basis of calendar year or financial year? ( as data in Form 1042S is given for the calendar year and in ITR portal it asks for financial year)
And
b. For peak value conversion we have to take SBI TT Rate of previous months last date or of the same day. And the peak value should be calculated from the date of investment to 31/December OR for the entire calendar year.
Awesome video ! much needed !
what if one falls under 30% slab and only 25% is deducted for dividend? How to fill the credit claimed sections and how to pay the rest 5% ?
Thank you for sharing detail. It's very helpful.
Is US dividend income is income w/o US tax deduction or post US tax deduction?
Tax payable on such income under normal provisions in India should be always 30% of the foreign income if the assessee is under 30% slab right? so in this case we get the credit of the whole amount paid in US since we are paying the full 30% in India.
Very well explained in detail, useful info 👌
Well explained in very easy manner
Hello Madam, Your video is very informative, However I am having few doubts, Request you to clarify the same. I am working in India for US company, I have received dividend on RSU stocks held in Fidelity account. It has 3 year lock in period. Non resident Alien withholding tax has been deducted in fidelity account. how to report the dividend and claim the withholding tax? Could you please guide/put a detailed video for the same. Thank you
Is this correct ?
So basically you end up paying 40% tax
25% in USA
Plus 15% in India
I thought the total tax would have been max of tax rates for the income type.
For example : if dividend income in US is taxed at 25% and India taxes it at slab rate - assuming 30%
Then you need to pay only incremental 5%
30% India - 25% USA TDS = 5%
Need 1 help on this question.. Do I need to declare in Return filing if I have 3 Months salary (Jan-Mar 2023) received in Europe, or also Do I need to fill form 67 ?
Yes you need to declare it in return filing and if the tax is also deducted in Europe then you need to file Firm67 to get benifit of DTAA and save tax in india on the income from Europe
Please tell me ma'am, while computing total global income, should we add capital gain from US also along with dividend?
It's seems to be the article for dividend income of individual is 25 not 10. Article 10 is company dividends
Madam, can we file form 67 using sec 91 instead of 90/90A even when there is a DTAA agreement between the countries? Reason I am asking this is my company CA has filed it under 91 and says that is ok. Double checking to be on safer side, Thanks a lot.
For dividend and interest income in Singapore, tax paid is nil. Suppose payable tax n India as per tax rate 34% then what will be the tax credit. Understand that as per article 10 & 11 of DTAA the applicable tax is 15%.
If you have not paid any tax in foreign then there will be no tax credit applicable.
@@Nama_CA Thanks. Then do I need to fill up form 67? Or I will straight away pay 15% tax as per DTAA?
Thank you for the information. I have A query, I moved to US last year on 1 JULY, So I fall under the category 60 days or more and 365 days in last four year. Given that I am not NRI, but during my stay in India I do not have any income, and the only income I have as salary is in US. Do I need to file tax on my income that I got in US. Thanks
1042S received from 1st Jan to 31st March as per US financial year but as per India financial year is apr to march than what should we do?
Same doubt?
Us jan to march is same as india apr to march
Consider us data upto 31 dec only
Though it is given only till dec, provisionally you can take a call to claim till march where it is evident in your statement as the first occurance is taxability and serving the form 1042S happens after the closure of the year
Can I file form 67 after filing audit report
I don't have 1042s but have a w2, only salary income, do i need to file this form? How is it different from tax relief schedule in ITR form? Please let me know
Hello Madam, In form 67 I can also claim the amount that was deducted for the entire year? Instead of just claiming for one month. Apart from that, can I file ITR within 7 days after filing Form 67, and can go with ITR 4?
FIrst of all kudos to you for being so lucid in all the explanation. I have a doubt:
1. My 1042 s shows the gross income to be 71 dollars and tax withheld to be 18 dollars. But my broker details show it to be 99 dollars(dividend received) and 24 dollars (tax deducted) respectively. Will there be a discrepancy when i attach 1042s as proof statement in the 4th section of form 67?
My assumption for this difference based on some calculation tells me that the remaining (99-71) amount was credited to me this year and not till 31 dec 2022 and same with taxes. I guess in india financial year starts with april and ends in march while in US its from jan till dec.
Should i just go ahead and still attach the pdf and continue? or should i only show and add US dividends received till last year dec? Please help. Thank you in advance :)
While calculating Average Tax rate you have done 0.3 * Foreign Income, I want to know if the person is having surcharge due to net income exceeding 50L is the calculation going to be different or still it will be just 30%?
Still the calculation will be same. You should not add surchage in average tax rate calculation.
Is dtaa applicable for France? Which form would be required here for tax summary?
If I have not transferred the dividend amount from the USA to the Indian bank account, Do I still have to file form-67?
very good explanation. very detailed and helpfull.
Glad it was helpful!
In the Gross Total Income, do I need to consider House Rental Income (Gross or after the std deduction of 30%), Income from other sources (like interest on FD etc.) ?
Very well explained, keep going and please update how to fill foreign assets in itr 2
Video is uploaded. Link is in discription.
Hi @Nama_CA do we need to file form 67 for sale of RSU s listed in US also ? No dividend income
Can I refill form 67 if I’ve already submitted? And is it fine to go with table D in schedule FA?
also in Gross Total Income, I believe LT Capital Gain can be ignored as it is charged at special rate to derive the average Tax % ?
In form 1042-s, broker has provided all the details in USD and exchange rate is not mentioned anywhere in that
I have added the details in INR in part A
Is it fine?
Madam,
Well explained.
I have another doubt regarding ESOP. If I hold foreign asset coz of ESOP should i fill in ESOP schedule.
You have to file schedule FA. ITR2 filing video link is in the description for schedule FA.
I don't have form 1042-S since I didn't submit W-8BEN. I have form 1099 with the tax deducted at 24%. Would form 1099 be sufficient for claiming foreign tax credit?
For which type of income?
@@Nama_CA Dividend income from RSUs
Yes that will be fine
@@Nama_CAwhat to dividend received from jan to march as form1024 is till dec only ?
I have dividend income amount less than $1. So, Form 1042-S is not available. Then what document I can upload instead?
I have also not received form 1042-S as my interest income was less than 1USD
Did you fill schedule FSI, TR while filling ITR2 ?
Thanks for providing good content. I have one question. Let say I have two brokerage accounts from two diff organizations and I have 2, 1042 pdfs with me. Is there a way to attach multiple pdfs in form 67.
Yes, make a .rar file and upload it.
Very well explained 😊
HI Ma'am , your video's are very informative and I shed with my friends , we resident Indian have one common question to clarify.
Our US registered company has issued dividend against alloted ESOP and the divident amount credit in our a/c in 28th Feb 2024. and shared a simple document
having total dividend amount and TAX withheld mentioned it . But have not given the Form 1042-S and may issue in early 2025.
Can we fill form 67 without Form 1042-S and just attching the simple doc and claim or adjust the withheld tax in this year ITR .
or Can we skip and avoid mentioning this dividend amount in this year ITR and include in next year 2025 return.
Please reply this will help a lot.
can we file the form 67 without Form 1042S
Yes you can file without 1042s but you need to attach valid prrof of income and tax withholding. Like broker statement.
@@Nama_CA Thanks for quick response , ma'am kindly also suggest on our main query should we report the received (28th Feb24)Dividend in this year ITR2 or we can skip this year as no form 1042s available and report this dividend in next year ITR , Pls suggest .
@@Nama_CA we just have company email and simple doc for dividend detail no broker statement etc
@Nama_CA can you please more details on this issue .I have same concern .
I have claimed Form 67, now should I file ITR 4 (44AD) or ITR 3?
Thank you @Nama_CA, I have a doubt though, for "Tax payable on such income under normal provisions in India" you filled 15% it seems, but the foreign dividends are taxable at the rate of 20% is it?
Foreign dividend in india is taxable as per the tax slab. But I have shown the calculation of average tax rate for tax rebate as per Income tax guideline.
I have small doubt do we need to show dividend till 31 March or 31 December?
From 1stJan23 - 31stDec23
One urgent query in schedule FSI one needs to enter Taxpayer Identification Number where one should enter TIN issued by source country or else Passport no. but I came to know my passport is expired so now I don't have TIN & Passport also. What to do in this case? Please reply.
Madam, can I provide statement from company for taxes deducted as tax statement from government might be delayed
Yes you can provide
@Nama_CA
Can we show foreign dividend income of A.Y 23-24 with the foreign dividend income of A.Y 24-25 if i had not declared foreign dividend income in last year return
Links in the description are not accessible. Please give as comment also. What is article number for US salary case while claiming in India? For US salaried person also, is the 1042S hold good as document to upload. Can I upload payslip itself as there are no tax statements like 1042 is not yet available..Thanks in advance
I will update the Link in description. Thank you for the feedback.
You will get 1042S next year. As US follow Jan to Dec financial year.
Hi , what is Income Code 06 and Income Code 52 in 1042- S ?
Hi Madam, thanks for helpful info. Can I upload From 16 issued by employer that shows foreign tax credit. I was on deputation in Australia thru same employer. Or I need upload only the statement or Notice of Assessment by Australia? Please help.
Yes, you can upload the document issued by your employer for taking foreign tax credit.
Ma'am what is the rate of tax as per Dtaa agreement i cannot find any rate in the article.
I am youtuber , some of my tax are withheld at US.
I can understand your video and think that I can use of form 67.
I see one problem. US tax withheld is from jan-dec and that case my march, Jan,feb,march withheld tax is not covered. (deducted but not in form)
which ITR to use. And how long it takes to form 67 credit before filing ITR .
hope to see reply soon
You have a business income so you need to file itr3 or itr4. For income from out side india you require to consider jan to dec income. The remaning jan to march will go in next financial year.
@@Nama_CA this solved my problem too, thanks :)
@@Nama_CA Does ITR 4 takes care of section 90 / US tax treaty or I have to file ITR 3 because ITR3 is very difficult.
Needed help,
Received esop from USA company, which are unlisted, bought back by company itself and gain is taxed under perquisites in salary.
Tax deducted in USA, also added in india income and tax calculation
Tax relief to be claimed under which sec 90/90a/91 and which article and what is DTAA rate?
Link is avaliable in discription.
First of all thanks for the videos mam. They are really helpful. I do my filing myself and this case complicated my filing procedure, and thanks to you now i know how to file this case.
I do have one question though, Which i will illustrate with an example.
1. I recieved dividend on Feb-23, this comes under financial year 2022-23 and should be filed in assesment year 2023-24.
2. The USA Financial year is from Jan-Dec and they publish Form 1042-S in March following year. So, i will recieve the Form 1042-S that will include details for Feb-23 payment in March-24.
3. As per my information i will have to put this Feb-23 income in my filing for assesment year 2023-24.
4. Now i have no form 1042-S to attach in Form67.
The question is can i upload other things like Activity details pdf from my brokerage firm that shows this payment and tax withheld? Or should i include this February Dividend income in my filing for assement year 2024-25?
This is a corner case due to different financial year periods between USA and India. Please help mam.
The February 23 dividend details will be included in AY2024-25 ITR filing. For Foreign assests and Foreign Income, we need to follow calander year.
This is exactly the situation I'm in. Thanks for bringing this up!
@@Nama_CA , for reporting of foreign assets, we do need to follow the calendar year, but taxes on all income earned in the FY need to paid in the following AY. So, in this case, the dividends earned in Feb 23 do become taxable in AY 2023-24. But, the 1042-S for US year 2022 won't show this income. So @shariq's question still needs an answer. Would other supporting evidence such as (sale transactions/tax withholding) activity details work as a substitute to 1042-S?
@@integralCalculus For indian income: yes we do need to report all income earned in FY. But for income earned form foreign: We need to declare as per calender year.
@@Nama_CAthis info is not correct. Kindly clarify ma’am. Also what happens for RSU gain in jan -mar? Am sure we have to show it
tax rebate means we will get back the extra amount that we paid as tax. Hence we shall be getting a tax rebate of the extra money we paid. ie (2025-1215) = 810 rs of rebate. Am i right? @4:40 you mentioned we will get tax rebate of 1215.
Rebate will be lower of tax paid in india and US
Not for the difference amount
Person is receiving Salary Income from Outside India (China) and he paid taxes on that in every month . All Other incomes have been taxable in India only . How to proceed with this please guide. He has given salary statement and amount of tax paid each month . How to find Tax payable in India ? Form 16 is not received by the client as his employer is outside India
In case the tds deducted by foreign company and the average tax rate is same, do we still need to file form 67. Kindly advise. Thanks
Yes If you want to claim tax rebate.
I am filing form 67 for some dividends I received from RSUs vested. Th US tax document is for the Jan to Dec 2022 period, but I have received some dividend in Feb 2023 as well. When filing form 67, should I report dividends from April 2022 to March 2023 ? Or the dividends from Jan 2022 to Dec 2022 ?
jan to dec 2022
Mam what will be the Tax rate for salary income as per DTAA between india and USA is it same for all sources of income as you have mentioned the tax rate as 25%. Please let know mam
It should be 25%. Check your 1042S
Isn't the rate of tax on dividend on foreign stocks in India 30%? Thus we have to claim 25% credit and pay remaining 5 %
Hi Sid, I also feel she is wrong at this point. It should be calculated by taking 30% into account. Do let me know if you get more clarity. Thanks
No it can vary, 15%, 20% or 30% (plus cess and other tax) depending on your total income slab.
My client has 2 form 1042S, do we have to submit FOrm 67 twice as there is no option to submit 2 supporting documents while filing form 67, what should i do??
YOu can upload zipped folder. So I kept 2 forms in one folder and zipped them.
I have invested from vested and Indmoney in US Stocks and receiving dividend on which tax is withheld as seen in the statements provided by the these two broker. I am filling form 67, but don't know what proof to attach in Part D as I don't have 1042-S form , also what to fill in the column of schedule FSI where the passport or TIN number is asked as my passport has been expired also any of the broker has not provided the TIN number. Please Help
As per my knowledge, the Tax on dividend should be pay by the company who is giving the dividend. So ask your broker how to get that. I am not sure about that statement will consider or not by IT department. Also I am not sure about that Expired passport will work for filing schedule FSI.
I have dividend income in fidelity(stock) account but I have not transferred to my bank. Do I still need to file Form67 now or when I transfer money to my bank in India? Thanks
You need to show every year irrespective of you transfers the amount or not.
Very helpful. Many thanks!!!
🙂
My daughter got perquisites in form 16 as stock in USA
.As per some informations provided few shares were sold to taxes .Now what article no shall we put in Form67? Is this capital gain or something else?
You don't need to do any thing with the shares which sold for Taxes.
Same is in my case. Ma'am is there any optiom to claim refund or adjustment of tax deducted on redemption of ESOPs. Since is it taxed twice. First when shown as perks by employer in salary head and second when showing same in Capital gain head (sale of unlisted shares).
This is very helpful. Thanks
Glad it was helpful!
Is only dividend income needs to be filled in this Form 67 or Capital gains as well??
Capital gain details can be added only in case tax paid on that in foreign country
in form 67, for 'rate of tax as per dtaa' field, what should we enter for foreign salary in UK??? is it foreign tax rate that was deducted in UK or the average Indian tax rate that we calculate on global income???
The foreign tax rate deducted in UK.
My company annual tax statement includes rsu gain in perquiste and that total income is mentioned on form 16, so then how to calculate avg rate of tax.
Prerequisite should be added to your total income for calculation of avg tax rate.
@@Nama_CA i didn't get the average tax rate you calculated. Like in the table you mentioned foreign income and Indian income separately , but my company has added rsu too (tax computation statement) in the indian income. In this case how to calculate average tax rate?
@@pranavsharma7479 RSU vested amount is consider as indian income and Dividend on RSU is foreign income. In my sheet also prequsite amount is related to RSU and gift money.
Thanks for the reply @@Nama_CA
If we hv more then 2 then two heads of income like Dividend and cap gains and too many entries ..how to fill in one form
You should fill the data in CSV file, it will easy your task. The CSV file is available in In part A of FORM67. The difference between direct entry and CSV is at the place of "country name" and "type of income" you need to write the numeric code of country and income" and that is available in the "instruction to fill CSV template" in part A of FORM67. And all the documents can be uploaded by single zip file in the attachment section of FORM67.
Simple and useful 👍🏼
What about Dividend Equivalent Units given ?
Hello Madam, My total tax liability in India is currently zero. I have a Foreign Tax Credit of ₹13,122. While I understand that the FTC can reduce my tax liability, I am uncertain if it can be claimed as a refund. Can you please confirm whether this amount can be refunded, or if it remains non-refundable?
FTC can reduce your tax hence called as rebate not refund
@@Nama_CA Madam, there is no way to get the refund of Rs. 13,122 which is deducted by USA company as withholding tax? Because my Indian tax liability is zero? They have also issued form 1042S regarding the same.
do I need to fill Form67 if I have not received any dividend, however got the RSUs vested?
@@shreyajaya9985 No, form 67 is for tax rebate on foreign income
If there is some dividend income in the last financial year, Should that be mentioned as well? If the dividend is reinvested, how to mention that?
Same doubt
Very well explained.👍
very nice explanation!
Thank you @Nama_CA, this helps a lot. I came down to US on 14th Dec'22 as an intra company transfer. So started receiving US salary from mentioned date and stopped getting my salary in India. Now i have few questions:
Do i still need to fill form 67 - as its just 15 days salary i have received for US FY22?
If yes,
- What form needs to be attached because i have not received anything as 1042S.
- Assuming filling form 67 would be exactly the same how you showed for dividends. Just that i shall consider my 15 days payout and follow your video?
- After filling form67, what modifications should i be doing to my regular ITR-1 filling?
Appreciate if you can answer me above questions. Thanks in advance!
If there is any tax deduction in US and you want to claim tax rebate, then it is necessary and you also needs to provide the document in attachment.
madam suppose i am getting stipend from Canada university+ interest income only India then how to report those transaction & form where i can get article no to claim rebate in DTAA . its wonderful video madam & got knowledge as i wanted to get it. pls guide na maam
As per our knowledge Scholarship/Stipend granted by a foreign Government, university or other educational institution outside India are eligible for exemption under Section 10(16)
@@Nama_CA maam technically is not stipend but its an part time income for which i worked in university, this not a knid of stipend maam
maam i subsribed your channel too
Hello Ma'am,
Can you clarify please?
1. In your example you have taken India Gross income based on Form 16. If there is additional India income like share, MF, rental etc then we'll need to first get the gross total from all of these also and the tax bracket on the total gross income. Correct?
2. For foreign salary income what is the article number?
3. For foreign income only the calendar year Jan 2023 to Dec 2023 needs to be considered, right? Not Jan 2024 to Mar 2024. Can you confirm this also?
1. For gross total you are corrct and need to calculate tax on that.
2. For artical number check the link provided.
3. Take financial year and provide all proof to incometax for income and tax withholding.
@@Nama_CA Thank you for your response ma'am. Had a followup question on your response.
1. So for point 3, I need to consider foreign income from Apr 2023 - March 2024 received in foreign country, right?
2. For Jan'24 - March'24, will salary slips be fine to upload in Form 67?
Kindly confirm. Thankyou.
Salary slip will work for tax rebate.
Yes, you will only get the rebate if you file Form67.
@@Nama_CAyou mentioned in other comments to use calendar year for foreign income, but here you are mentioning financial year?
If I am getting dividend 4 times in a year, should I sum up each dividend multiplied by previous month SBI TT rate or can we just take total value from 1042S form and multiply it by TT rate on 31-Dec-22 or 31-03-23 date ?
If the divided is not a huge amount, you can do sum and take the tt rate of 31st dec.
@@Nama_CA Thanks for the quick reply. Very informative video
@@manishsingh-vj8ls Ty and subscribe my channel n share the link with your friends.
@@Nama_CA done
you have taken average rate as 15% .. Shouldn't we take applicable slab rate rather than this average rate (gross income/total tax) ?
how Indian government verifies if foreign income data is correct (if the person has no transaction with indain bank account) ? or is it self_ DECLaration type income onle y
IT department get data from all countries every year.
Hello Ma'am,
First of all, thank you so much for this video!
Waiting for your next video on ITR2, if you have any ETA on that?
Additionally, I have several doubts if you could answer it would be great for me to proceed further
As per this video, it's compulsory to fill out form 67 before ITR, could you please let me know the nature of income for ESPP of US stock?
I have a brokerage etrade document instead of form 1024S that also helps us to rebate?
Once again, Thank you so much for this useful video, please let us know about the next video ITR2 filling ETA? Eagerly waiting to fill out the ITR!
Many Thanks!
Additionally, if we purchase the stock the US government took the 25% tax at the source or afterwards? I have this doubt because for fy 22-23 I have only holds the ESPP US stocks so form 67 is valid or we can claim 67 after the sell of stocks only?
Thank you very much. The ETA of ITR2 video is 19th July. About the nature of income: As you purchased the shares through ESPP, this is your Foreign Assets not income, which you need to be declared in ITR2. I have covered this "foreign assets declaration" in my next video of ITR 2. and in your case there might be income of dividend. The dividend need to be treated in the same way how I explained in this video. If you want to claim tax rebate, then only you need to file the Form67 before ITR. If you don't want to claim then it is not required.
If you bought the shares in 2023 then you will not have 1042S since US follow Jan to Dec financial year and US company will provide you 1042S after closing financial year 2023.
@@niteshmotwani4095 As per my knowledge there is no tax on purchase of US company's share. You might have paid tax on dividend.
@@Nama_CA Thank you so much for sharing ETA, Waiting for this Video Thanks in Advance, I have one more doubt about my understanding of dividend income from ESPP purchase and just wanted to clarify this (so the discounted stock would never be considered a dividend right, It would be considered as dividend income when I would receive any extra stock on top of my stock purchase), is this correct?
@@niteshmotwani4095 The ESPP consider for Dividend but it again invested in shares only. So you are right when you get the extra stock on the previous stock it will be counted as a dividend income. And that stock also need to be declared in Foreign Assets.
Can you please tell me if my total income is 2 lakhs. And foreign dividend is 2000 inr. Do I have to submit form 67? Its not allowing me entering 0. Please guide.
@@howtodo685 how will you get rebate since your tax in India is already zero
@@Nama_CAthank you. I was thinking to file 67 with 0 claim and its not allowing. As I understand I don't need to submit 67 as total income is 2 lakhs.
Can i file form 67 after due date as in the recent judgement it can be file till the end of the assessment year
Yes you can.
Maam for youtube receipts on which withholding tax is deducted from US, the tds as per form 1042 S is showing till calendar year 2022 only so while calculating the gross receipts should we add only that amount of tds in our net receipts showing it as gross receipts of global income or the tds deducted from jan to march 23 should also be taken, but for the latter we shall not be able to claim credit as it would not be in form 1042 s
You have a business income so you need to file itr3 or itr4. For income from out side India you require to consider Jan to Dec income. The remaining Jan to March will go in next financial year.
Do a private company need to file form 67 before ITR filing to claim foreign tax credit
As per my views, Yes company also need to file form 67 if tax deducted by foreign country and wants to take tax credit of the same in India.
Is income declaration os have period restriction
Suppose
We have year end 31 03 23
And usa follows
31 12 22
Then up to which period
We have to declare income and claim exemptions
Up to 31st December
Thank you very much.
How do you e verify form 67?
For NRI,If Interest from NRO account is taxed in US then how to file
In case of NRI, they don’t require to disclose their foreign income in India.
I see different TDS in dividend statement and form 1042S
How to interpret TDS in form 1042S
that's because you may be calculating dividend from april to march where your form 1042S will be from january to december
@@hariprasad-ch2qcThank you!
Will check
Original ITR is correct but form 67 error is there, can i file another form 67 to rectify mistake ?....is there any need to revise return also ??
What type of error have you made?
@@Nama_CA in form 67 i had done mistake by entering refund claimed in sec 91 but in ITR entered correctly in sec 90
@@chandrakiran7501 if your ITR has been processed then their is no point to update form 67 since its only section number error. You have claimed the right amount
@@Nama_CA ITR DIDNT PROCESSED. DEMAND NOTICE CAME TO PAY THE FOREIGN TAX CREDIT.
@@chandrakiran7501 then u need to upadtae form67 and also reply to incometax on demand notice
How to attach multiple form 1042S?
Zip file
Thanks for sharing! Appreciate it
Well explained