Relief u/s. 90 can claim in Updated Return u/s. 139(8A) - Original Return u/s. 139(1) has not filed

[PRIYAM KHAMBHATA]

Respected Sir

My client is employee of US based Company since long. He is doing Job in India (Work from Home) and earned Salary in USD, which is credited in US Bank Account. It is to be noted that Federal Tax is also deducted on his Salary in USD. It is important to be noted that His Residential Status is Ordinary Resident, however He has not filed Indian Income tax Return for AY 2022-23 to AY 2025-26..

My Query is Whether, my client is to claim Relief u/s. 90 in respect of Foreign Tax Credit, while offering US Salary in Updated Income tax Return u/s. 139(8A) of the Income tax Act for AYs 2022-23 to 2025-26. Foreign Tax Credit statement in Form 67 for claiming Foreign Tax Credit is to be filed with updated Income tax Return filed u/s. 139(8A). ie. after 139(1) or 139(4). Is there any violation for delay filing Form 67

Please Guide me.

 

AI Summary

Foreign Tax Credit may be claimed in an updated return, and delayed Form 67 filing is treated as a procedural lapse.
An ordinarily resident assessee is taxable in India on global income, including salary earned in USD and credited to a US bank account, and may claim Foreign Tax Credit under section 90 while filing an updated return under section 139(8A). Form 67 is treated as a procedural requirement for FTC, and delay in filing it is viewed as a procedural lapse that should not defeat the claim where foreign tax payment is evidenced and the income is duly offered to tax in India.