Foreign tax credit and Form 44 (formerly Form 67) screen

Model an indicative source-level foreign-tax-credit ceiling without assuming every foreign tax payment is automatically creditable in India.

Foreign-tax credit ceiling

This source-level screen avoids pretending that all foreign tax is automatically creditable.

Indian residential status for the relevant tax year

Foreign income represented in this source

₹

Foreign tax paid, in the foreign currency

INR per foreign-currency unit

₹

Use the conversion method required for the filing computation; this is not fetched automatically.

Indian tax attributable to this foreign income

₹

Enter the source-level Indian tax from your computation. The tool deliberately does not allocate slab tax for you.

Credit already used against another represented amount

₹

Indicative credit result

The selected residence facts can bring this foreign income into the Indian computation. The model caps credit at the lower remaining foreign tax and entered Indian tax attributable to that income.

Foreign tax converted to INR

₹5,00,000

Maximum indicative credit

₹3,50,000

Uncredited foreign tax

₹1,50,000

Net Indian tax on this source

₹0

Form 44 (formerly Form 67), the applicable treaty article, tax-payment evidence, conversion rule, source category and filing timetable must all be checked separately. This calculator models only the lower-of-two ceiling represented by your inputs.

Direct answer

Foreign-tax credit is limited by both residence and the Indian tax attributable to the income

The represented foreign income first has to fall within the Indian tax scope for the selected residential status. The indicative credit is then capped at the lower remaining foreign tax and Indian tax attributable to that source. Form 44 (formerly Form 67) and treaty documentation are compliance layers; neither creates a credit larger than the permissible underlying amount.

1Determine NR, RNOR or ROR status for the exact Indian tax year.
2Convert supported foreign tax using the applicable filing conversion method.
3Allocate Indian tax to the same foreign source and category.
4Complete Form 44 (formerly Form 67) and retain the foreign assessment, withholding and payment evidence.

Continue the journey

Plan the return date and RNOR position Screen Schedule FA reporting Calculate Indian NRI income tax

Official sources cited in this tool

Verify the rule at its source

Open the authority’s current page before acting. These links are evidence, not an endorsement of TaxCalci.

Income Tax e-Filing portal Income Tax Department DTAA resources

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