{"id":33225,"date":"2026-09-25T23:57:25","date_gmt":"2026-09-25T18:27:25","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=33225"},"modified":"2026-09-26T00:15:54","modified_gmt":"2026-09-25T18:45:54","slug":"ftc-cannot-be-denied-merely-for-late-filing-of-form-67","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/","title":{"rendered":"FTC Cannot Be Denied Merely for Late Filing of Form 67"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6ab6c6adbc20e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6ab6c6adbc20e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Foreign_Tax_Credit_Cannot_Be_Denied_Merely_for_Late_Filing_of_Form_67_ITAT_Bangalore_Ruling_Explained\" title=\"Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67: ITAT Bangalore Ruling Explained\">Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67: ITAT Bangalore Ruling Explained<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Background_of_the_Case\" title=\"Background of the Case\">Background of the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#What_Is_Form_67\" title=\"What Is Form 67?\">What Is Form 67?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Why_Did_the_CPC_Reject_the_Claim\" title=\"Why Did the CPC Reject the Claim?\">Why Did the CPC Reject the Claim?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Key_Observations_of_ITAT_Bangalore\" title=\"Key Observations of ITAT Bangalore\">Key Observations of ITAT Bangalore<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Form_67_is_procedural_not_substantive\" title=\" Form 67 is procedural, not substantive\"> Form 67 is procedural, not substantive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#A_genuine_claim_cannot_be_rejected_solely_for_delay\" title=\" A genuine claim cannot be rejected solely for delay\"> A genuine claim cannot be rejected solely for delay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Technicalities_cannot_defeat_DTAA_benefits\" title=\" Technicalities cannot defeat DTAA benefits\"> Technicalities cannot defeat DTAA benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#4_Delay_in_filing_the_appeal_is_also_condoned\" title=\"4. Delay in filing the appeal is also condoned.\">4. Delay in filing the appeal is also condoned.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Why_the_Foreign_Tax_Credit_Was_Not_Allowed_Straight_Away\" title=\"Why the Foreign Tax Credit Was Not Allowed Straight Away\">Why the Foreign Tax Credit Was Not Allowed Straight Away<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Practical_Implications_for_Taxpayers\" title=\"Practical Implications for Taxpayers\">Practical Implications for Taxpayers<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Illustration\" title=\"Illustration\">Illustration<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Key_Takeaway\" title=\"Key Takeaway\">Key Takeaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/ftc-cannot-be-denied-merely-for-late-filing-of-form-67\/#Need_help_with_tax_audit_planning_compliance_or_Form_67-related_queries\" title=\"Need help with tax audit planning, compliance, or Form 67-related queries?\">Need help with tax audit planning, compliance, or Form 67-related queries?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33226\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling.png\" alt=\"Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67\" width=\"1024\" height=\"1536\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling-200x300.png 200w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling-683x1024.png 683w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling-768x1152.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/67-filling-800x1200.png 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Foreign_Tax_Credit_Cannot_Be_Denied_Merely_for_Late_Filing_of_Form_67_ITAT_Bangalore_Ruling_Explained\"><\/span><span style=\"color: #000080;\"><strong>Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67: ITAT Bangalore Ruling Explained<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A recent decision of the Income Tax Appellate Tribunal, Bangalore brings meaningful relief to taxpayers claiming Foreign Tax Credit. The Tribunal held that a genuine Foreign Tax Credit claim should not be rejected only because Form 67 was filed late, since the requirement is procedural and not a substantive condition for claiming the credit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Background_of_the_Case\"><\/span><span style=\"color: #000080;\"><strong>Background of the Case<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The taxpayer, a resident of India, had earned income from employment\/services in Belgium. The key facts were:<\/p>\n<ul>\n<li>Income earned in Belgium: INR 14.42 lakh<\/li>\n<li>Tax paid in Belgium: INR 4.53 lakh<\/li>\n<li>Foreign Tax Credit claimed in India under the India\u2013Belgium Double Taxation Avoidance Agreement : INR 3,00,783<\/li>\n<li>The foreign income was duly reported in the Indian Income-tax Return (ITR).<\/li>\n<li>However, Form 67, prescribed under Rule 128 of the Income-tax Rules for claiming Foreign Tax Credit, was not filed within the stipulated time.<\/li>\n<\/ul>\n<p>Because of this, the Centralised Processing Centre disallowed the FTC while processing the return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Is_Form_67\"><\/span><span style=\"color: #000080;\"><strong>What Is Form 67?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Form 67 is a statement required under Rule 128 of the Income-tax Rules, 1962 for claiming credit of taxes paid outside India. It typically captures details of the foreign income, the country in which tax was paid, the amount of foreign tax paid, the overseas Tax Identification Number (where applicable), and documentary proof of the foreign tax payment. Its purpose is to allow the tax department to verify the FTC claim.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_Did_the_CPC_Reject_the_Claim\"><\/span><span style=\"color: #000080;\"><strong>Why Did the CPC Reject the Claim?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The CPC took the view that since Form 67 was not furnished within the prescribed time, the procedural condition was not met and Foreign Tax Credit could not be allowed. As a result, the claim was rejected even though the foreign tax had actually been paid and the income had been disclosed in India.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Observations_of_ITAT_Bangalore\"><\/span><span style=\"color: #000080;\"><strong>Key Observations of ITAT Bangalore<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Form_67_is_procedural_not_substantive\"><\/span><span style=\"color: #000080;\"><em> Form 67 is procedural, not substantive<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The Tribunal noted that the right to Foreign Tax Credit flows from the Income-tax Act, Rule 128, and the applicable DTAA. Form 67 is merely a means of furnishing information and supporting evidence. A delay in filing it therefore cannot take away a substantive right granted under the DTAA and the Act.<\/p>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"A_genuine_claim_cannot_be_rejected_solely_for_delay\"><\/span><span style=\"color: #000080;\"><em> A genuine claim cannot be rejected solely for delay<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Where the foreign income has been offered to tax in India, the foreign tax has actually been paid and supporting documents are available, the claim should be examined on its merits rather than denied only because of a procedural lapse.<\/p>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Technicalities_cannot_defeat_DTAA_benefits\"><\/span><span style=\"color: #000080;\"><em> Technicalities cannot defeat DTAA benefits<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">A DTAA exists to prevent double taxation. Denying Foreign Tax Credit merely because a form was filed late could leave the taxpayer paying tax twice on the same income, which would defeat the very purpose of the treaty.<\/p>\n<h4 style=\"padding-left: 40px;\"><span class=\"ez-toc-section\" id=\"4_Delay_in_filing_the_appeal_is_also_condoned\"><\/span><span style=\"color: #000080;\"><em>4. Delay in filing the appeal is also condoned.<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"padding-left: 40px;\">Notably, the Income Tax Appellate Tribunal (ITAT), Bangalore also condoned a delay of 1,687 days in filing the appeal, reflecting its approach that genuine cases should be decided on merits and not dismissed on technical grounds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_the_Foreign_Tax_Credit_Was_Not_Allowed_Straight_Away\"><\/span><span style=\"color: #000080;\"><strong>Why the Foreign Tax Credit Was Not Allowed Straight Away<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This point is often misunderstood. The Income Tax Appellate Tribunal (ITAT), Bangalore did not directly grant the FTC. It sent the matter back to the Assessing Officer (AO) for verification, directing the AO to examine the Form 67 filed by the taxpayer, proof of tax paid in Belgium, the Belgian tax returns and assessments, eligibility under the DTAA and other supporting evidence. The final credit will be determined only after this verification.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Practical_Implications_for_Taxpayers\"><\/span><span style=\"color: #000080;\"><strong>Practical Implications for Taxpayers<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong><em>When this ruling can help: <\/em><\/strong><\/span><\/p>\n<p>The decision is useful where:<\/p>\n<ul>\n<li>Foreign income has been disclosed in India<\/li>\n<li>The Foreign taxes have actually been paid<\/li>\n<li>Form 67 was missed or filed late<\/li>\n<li>Supporting documents are available<\/li>\n<\/ul>\n<p>In such cases, taxpayers can contend that a procedural lapse should not deprive them of FTC.<\/p>\n<p><strong><em><span style=\"color: #000080;\">But don&#8217;t ignore Form 67 :<\/span> <\/em><\/strong><\/p>\n<p>The ruling is not a licence to skip compliance. Taxpayers should continue to:<\/p>\n<ul>\n<li>File Form 67 within the prescribed time<\/li>\n<li>Keep foreign tax certificates<\/li>\n<li>Preserve withholding tax documents<\/li>\n<li>Retain copies of foreign tax returns<\/li>\n<li>Hold on to proof of tax payments<\/li>\n<\/ul>\n<p>Failing to do so can result in prolonged litigation and closer scrutiny.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Illustration\"><\/span><span style=\"color: #000080;\"><strong>Illustration<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Suppose Mr. A earns INR 20 lakh in the UK, pays UK tax of INR 4 lakh, and the Indian tax on that income works out to INR 5 lakh. Under the Foreign Tax Credit provisions, he can claim credit up to the lower of the foreign tax paid (INR 4 lakh) and the Indian tax payable on that income (INR 5 lakh), so his FTC would be INR 4 lakh. If Form 67 is filed late but all documents support the foreign tax payment, this ruling backs the argument that FTC should not be denied merely because of the delay.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaway\"><\/span><span style=\"color: #000080;\"><strong>Key Takeaway<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Income Tax Appellate Tribunal (ITAT), Bangalore has reaffirmed an important principle: a procedural defect cannot override a substantive treaty benefit. Form 67 remains a mandatory compliance requirement, but a genuine FTC claim should not be rejected only because the form was filed late. Taxpayers should still file Form 67 on time and keep complete records, as the claim may be verified by the Assessing Officer before the credit is finally allowed.<\/p>\n<p>I adjusted the headline slightly: the original read &#8220;Foreign Tax Credit Denied for Non-Filing of Form 67,&#8221; which contradicts the body (the Tribunal held Foreign Tax Credit should <em>not<\/em> be denied for late filing). If you&#8217;d prefer the original title kept, let me know.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Need_help_with_tax_audit_planning_compliance_or_Form_67-related_queries\"><\/span><span style=\"color: #000080;\"><strong>Need help with tax audit planning, compliance, or Form 67-related queries?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>M\/s Rajput Jain &amp; Associates, Chartered Accountants, assists businesses and professionals with tax audits, income tax compliance, and advisory services. P-6\/90 (2F), Connaught Circus, Connaught Place, New Delhi-110001 +011-43-52-0194 | 91-98-11-322-785 \u2709\ufe0f <a href=\"mailto:info@carajput.com\" data-cke-saved-href=\"mailto:info@carajput.com\">info@carajput.com<\/a> | \ud83c\udf10 <a href=\"http:\/\/www.carajput.com\/\" data-cke-saved-href=\"http:\/\/www.carajput.com\/\">www.carajput.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Tax Credit Cannot Be Denied Merely for Late Filing of Form 67: ITAT Bangalore Ruling Explained A recent decision of the Income Tax Appellate Tribunal, Bangalore brings meaningful relief to taxpayers claiming Foreign Tax Credit. The Tribunal held that a genuine Foreign Tax Credit claim should not be rejected only because Form 67 was &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[10572],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33225"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=33225"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33225\/revisions"}],"predecessor-version":[{"id":33231,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33225\/revisions\/33231"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=33225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=33225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=33225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}