What is Form 67?
Form 67 is the statement used under the Indian income-tax rules to claim foreign tax credit. If you are an Indian resident and some of your income was taxed in another country, for example because a foreign client withheld tax from your invoice, you can generally reduce your Indian tax by that foreign tax, within limits. Form 67 is how you tell the income-tax department about the foreign income and the tax paid on it, supported by proof such as the client's withholding certificate.
The form is filed online on the income-tax portal, and the rules set a time limit for filing it in relation to your return. The Income-tax Act, 2025 came into force from 1 April 2026 and renumbered many forms and rules, so confirm the current form number and deadline with your CA.
Why it matters for exporters
Service exporters often meet foreign withholding tax, especially when clients pay royalties, licence fees or fees for technical services. If you do not file Form 67 properly, you may lose the credit and end up paying tax on the same income twice.
There is also a banking link. When tax is withheld abroad, the money that reaches your Indian account is less than the invoice value you showed on the EDF. Keep the withholding certificate with the FIRA and invoice. That one bundle supports both your foreign tax credit claim and your explanation to the AD bank when it matches the payment in EDPMS. The EDF itself does not change your income-tax obligations.
Example
Quill Content Studio, a proprietorship, invoices a client abroad USD 5,000. The client withholds USD 500 under its local law and pays USD 4,500, issuing a withholding certificate. Quill's bank credits the net amount. At year end Quill's CA reports the full USD 5,000 as income and files Form 67 to claim credit for the USD 500. The invoice had gone on Quill's monthly EDF at its full value.
Common confusion
Form 67 is not the same as a TRC, which proves residence, or a W-8BEN-E, which is a US form. Read foreign tax credit and Form 67. This is general information, not tax advice.