Foreign Tax Credit Calculator — Form 67 and Form 44
Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Estimate allowable foreign-tax credit and identify the AY 2026–27 or Tax Year 2026–27 filing route.
Estimate foreign-tax credit and filing route
FTC result
Use country-wise and source-wise figures already converted under the prescribed rate.
Indicative credit—
Foreign tax not credited—
Form
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General timeline
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Accountant verification
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How This Is Calculated
Foreign Tax Credit under Rule 128 allows credit for foreign tax paid on income also taxed in India, capped at the lower of the actual foreign tax paid or the Indian tax attributable to that same income (and further capped by any DTAA-specific limit) — disputed foreign tax that hasn't been finally resolved is generally excluded from the credit computation.
Frequently Asked Questions
Is Foreign Tax Credit capped at the actual foreign tax paid?
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The credit is the lower of the actual foreign tax paid and the Indian tax computed on that same income (further limited by any applicable DTAA cap) — you can never claim more credit than the Indian tax that would otherwise be due on that income.
Can I claim FTC on foreign tax that is still under dispute?
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Generally no — foreign tax that is being contested or disputed (not yet finally determined) is typically excluded from the FTC computation until the dispute is resolved, since the final tax liability isn't yet certain.
Do I need to file anything specific to claim FTC?
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Yes — claiming Foreign Tax Credit generally requires filing Form 67, along with supporting evidence of the foreign tax paid, typically before or along with your ITR — missing this can jeopardize the credit claim.
Scope: Computes the Foreign Tax Credit (FTC) available for tax paid in a foreign country on income also taxable in India, per Rule 128 of the Income-tax Rules, and outlines the Form 67 / Form 44 filing requirement.
Calculation logic
FTC = lower of (a) foreign tax paid/deducted on the specific income, or (b) the Indian tax payable on that same income (computed by applying the average Indian tax rate on total income to the foreign-sourced income component), computed separately for each source country and income category.
Where a DTAA specifies a lower relief rate for that income category, the DTAA rate governs instead of the general Rule 128 computation — the calculator applies the DTAA rate where the user has identified one via the DTAA Relief Selector.
Form 67 (statement of foreign income and tax) must be filed, generally on or before the due date for filing the return (with a further limited window for delayed filing in specific circumstances per current CBDT relaxation), for the credit to be allowed — the calculator flags this filing requirement as a precondition.
Inputs and assumptions
FTC is not available for interest, penalty or fee paid in the foreign country — only the foreign income-tax itself (as defined under Rule 128) qualifies for credit, which the calculator applies by excluding non-tax foreign charges from the credit base.
Foreign tax paid in a later year than the year the corresponding income is taxable in India (e.g., due to different tax-year timing between countries) has a specific carry-forward/claim mechanism under Rule 128 — the calculator applies this where the user indicates a timing mismatch.
Exclusions and edge cases
Does not itself file Form 67 — this must be filed electronically on the Income Tax e-filing portal, generally before filing the return claiming the credit.
Disputed foreign tax (under appeal in the foreign country) has specific rules for provisional credit and subsequent adjustment, which require careful year-by-year tracking not fully automated by this single-year credit calculator.