What changed when Form 44 replaced Form 67 for foreign tax credit?

Foreign tax credit (FTC) lets a resident of India set tax withheld or paid abroad against Indian tax on the same income. Under the Income-tax Act, 1961 the claim was made in Form 67 under rule 128 of the Income-tax Rules, 1962.² The Income-tax Act, 2025 came into force on 1 April 2026, and the Income-tax Rules, 2026 moved the same mechanism to rule 76, with the claim now made in Form No. 44.¹³

This page sets out what changed. The full computation and filing steps are in foreign tax credit with Form 67 and Form 44, and why clients withhold in the first place is in foreign withholding tax.

What is the change from Form 67 to Form 44?

The change from Form 67 to Form 44 moves the foreign tax credit claim from rule 128 of the Income-tax Rules, 1962 to rule 76 of the Income-tax Rules, 2026, for income of tax year 2026-27 onwards.¹²³ The changes are mostly in deadlines, verification and paperwork.¹²

"Accountant" in rule 76(16) means an accountant as defined in section 515(3)(b) of the 2025 Act.¹

Who does Form 44 apply to, and who needs an accountant to verify it?

Form 44 applies to any resident claiming credit for foreign tax on income of tax year 2026-27 onwards, and under rule 76(16) it must be verified by an accountant where the filer is a company, or, in all other cases, where foreign tax paid outside India for the tax year equals or exceeds ₹1,00,000.¹

For example, a sole-proprietor UX designer has ₹40,000 of tax withheld by a client abroad in tax year 2026-27, and she files Form 44 herself. An agency run as a private limited company with ₹15,000 of foreign tax needs accountant verification regardless of the amount, because it is a company.¹

How do you move from Form 67 to Form 44?

You move from Form 67 to Form 44 by sorting withholding certificates by the date the income was earned and planning for the new verification and dispute steps.¹²

1. Sort certificates by income date: before 1 April 2026 for Form 67, from 1 April 2026 for Form 44.¹²
2. Total foreign tax early: add up foreign tax for tax year 2026-27, so you know whether the ₹1,00,000 accountant verification threshold applies.¹
3. Track disputes: diary six months from the month a dispute is settled for Form 45.¹
4. Refile after a refund: if a foreign tax refund arrives for an amount already credited, file Form 44 again under rule 76(14).¹

Which form and deadline apply to which year of foreign income?

The form and deadline for foreign tax credit depend on when the income was earned, not when you file.¹²³

For example, a translator whose UK client withheld tax on a February 2026 invoice uses Form 67, and the same translator uses Form 44 for tax withheld on an invoice dated May 2026.¹²

The e-filing portal's Form 67 user manual still says the form is furnished on or before the due date for the return under section 139(1).⁴ Rule 128(9), as substituted with effect from 1 April 2022, allows filing up to the end of the assessment year, provided the return was filed under section 139(1) or (4).² Where the two differ, the rule is the legal text; filing early avoids the question.

What happens if you file the wrong form or miss the Form 44 conditions?

If you miss the Form 44 conditions, the credit is at risk, because rule 76 ties the claim to filing within twelve months from the end of the tax year and to a return filed under section 263(1) or (4).¹

• Missing verification: Form 44 needs an accountant's verification for a company or for foreign tax of ₹1,00,000 or more.¹
• Disputed tax: settlement is reported in Form 45 within six months of the end of the month the dispute is settled.¹
• Later refund: Form 44 is filed again where a refund of foreign tax already credited arises.¹

How is foreign tax credit calculated under Form 44?

Foreign tax credit under Form 44 is calculated the same way as under Form 67: the lower of the Indian tax and the foreign tax on each source of income in each country.¹²

• Timing: a resident gets credit in the year the corresponding income is offered to tax in India, spread in proportion if the income is taxed over more than one year.¹²
• Foreign tax: the tax covered by the treaty with that country, or, for a country without a treaty, tax in the nature of income-tax.¹²
• What it offsets: tax, surcharge and cess, but not interest, fee or penalty.¹²
• Per source and country: the lower of the Indian tax and the foreign tax on that income, ignoring any foreign tax above the treaty rate.¹²
• Exchange rate: the telegraphic transfer buying rate on the last day of the month before the month in which the tax was paid or deducted.¹²
• Proof: a certificate or statement from the foreign tax authority, from the person who deducted the tax, or signed by the taxpayer and backed by proof of payment or deduction.¹²

Section 160 of the 2025 Act continues the relief for income taxed in a country with no treaty.⁵ For a worked calculation, see foreign tax credit with Form 67 and Form 44.

What are the common mistakes when switching from Form 67 to Form 44?

The common mistakes when switching from Form 67 to Form 44 are choosing the form by filing date, missing the accountant threshold, and relying on the old portal deadline text.¹²⁴

• Filing-date logic: the income date decides the form.¹²
• Late threshold check: total foreign tax early in the year.¹
• Old portal text: the Form 67 manual's deadline differs from rule 128(9).²⁴
• Forgetting Form 45: disputes now have their own form.¹

Given the threshold and deadlines, discuss the claim with a chartered accountant (CA) before filing the return for tax year 2026-27.¹