I am a remote worker for a US Based Fintech company.Its my first year working as the remote worker.As now i have realized its not simple to fill taxes as remote worker earning in dollar.So i used one online CA consultaion firm to clear my all doubt but i understand nothing just some type for form 67 which i have to fill in the income tax portal.Please anyone here in finanjo community help me.
If you’re working remotely for a US-based company and getting paid in dollars, the US may deduct tax before paying you. However, as a resident taxpayer in India, you are still required to report this income in India. This raises the question: Do you have to pay tax on the same income again in India? The answer is no, if you file Form 67.
What is Form 67?
Form 67 is a crucial tool for resident taxpayers in India who receive foreign income that has already been taxed abroad. It allows you to report this income and claim a Foreign Tax Credit (FTC) in your Income Tax Return. This credit ensures that you do not pay tax twice on the same income, thanks to Double Taxation Avoidance Agreements (DTAA) that India has with many countries.
How to File Form 67?
To claim this credit, you need to fill out Form 67 with the following details:
- Type of Foreign Income: Specify the nature of the income you received from abroad.
- Tax Paid Overseas: Provide the amount of tax you have already paid in the foreign country.
- Country of Taxation: Mention the name of the country where the tax was paid.
- Tax Payable in India: Calculate and report the tax that would be payable on that income in Indi