The Indian income tax system allows individuals and entities to claim relief under Section 90 concerning taxes paid in foreign countries. Form 67 is pivotal in this process, aiding in seeking relief under Section 90. Exploring the essentials of Section 90 relief, Form 67’s purpose, and the feasibility of belated filings becomes crucial.

Relief under Section 90:

Section 90 of the Income Tax Act, 1961, is key in preventing double taxation for Indian residents earning income abroad. This section enables them to claim relief for taxes paid in foreign countries with which India has Double Taxation Avoidance Agreements (DTAAs).

Purpose of Form 67:

Form 67, an application for Section 90 relief, demands specific details such as personal information, foreign country details, tax specifics, and sections under which relief is sought.

Belated Filing of Form 67:

The Income Tax Act doesn’t explicitly allow belated Form 67 filing. However, recent ITAT judgments show that the late filing of Form 67 doesn’t necessarily deny Foreign Tax Credit (FTC) entitlement. Various cases ruled in favor of taxpayers, supporting the belated filing’s validity.

Key Rulings:

Several ITAT cases, including the Ahmedabad, Jaipur, Bangalore, and Kolkata benches, have favored the late filing of Form 67, asserting its directory, not mandatory, nature. They emphasized that relief under Section 90 shouldn’t be denied solely based on delayed Form 67 submissions.

Conclusion:

While the Income Tax Act doesn’t expressly accommodate belated Form 67 filings, recent ITAT judgments establish its directory nature. Taxpayers should aim for timely submissions of Form 67 to ensure smoother processing of relief claims and avoid double taxation. Seeking guidance from tax professionals or the Income Tax Department on Form 67’s procedures, especially for belated filings, is advisable.