Form 67 step-by-step: how to claim foreign tax credit on US dividends in ITR-2 (2026)

When a US company pays you a dividend, the broker withholds 30% (or 25% under the India-US DTAA) and remits it to the IRS. You receive only 70 cents of every dollar paid out.

That withheld amount is not lost. India-US Double Taxation Avoidance Agreement (DTAA) Article 25 allows you to claim it as a foreign tax credit against your Indian income tax on the same dividend income. The mechanism is Form 67 under Rule 128 of the Income Tax Rules, 1962.

Most Indian investors who hold US stocks or RSUs never file Form 67 — either they don't know it exists, or they think it's complicated. It is not complicated. This guide walks through every field.

What Form 67 does

Your US dividend income is taxed in both countries:

• US: 30% withheld at source by the broker (or 25% under DTAA if W-8BEN filed correctly)
• India: Dividend taxable at your income tax slab rate as "Income from Other Sources"

Without Form 67: you pay Indian tax on the full dividend amount, and the 30% US withholding is an additional cost on top.

With Form 67: the 30% US withholding is credited against your Indian tax on the same dividend. You avoid double taxation — you pay only the higher of the two rates, not both.

Example:

• Dividend received: $1,000
• US withholding (30%): $300
• You receive: $700 net
• Indian tax at 30% slab on ₹84,000 (gross dividend): ₹25,200
• Foreign tax credit (₹25,200 worth of the $300 withheld): Full offset (Indian tax ≤ US withholding converted to INR)
• Net Indian tax after credit: ₹0 (Indian tax of ₹25,200 < US tax of ~₹25,200 at ₹84 TTBR)

In this example, Indian tax and US withholding are roughly equal — you pay nothing additionally in India. The credit eliminates the double tax.

What you need before filing Form 67

1. Form 1042-S from your broker

This is the US tax document that shows:

• Gross dividend amount paid to you
• Amount of US tax withheld
• Withholding rate

Where to find it:

• Fidelity NetBenefits: Tax Center → Tax Documents → Form 1042-S
• E*Trade (Morgan Stanley at Work): Tax Center → Tax Documents → Form 1042-S
• Vested/INDmoney/Rovia: Tax documents section, typically available by February 15 for the prior year

Form 1042-S is issued for the calendar year January 1–December 31. For ITR-2 (assessment year 2026-27, financial year 2025-26 = April 1, 2025 to March 31, 2026), you need:

• Calendar year 2025 Form 1042-S (dividends paid January–December 2025)
• Note: Indian financial year and US calendar year overlap partially — January–March 2025 is in both FY 2024-25 and AY 2025-26. Ensure you're filing Form 67 for the correct Indian financial year.

2. SBI TTBR for conversion to INR

All amounts in Form 67 must be in INR, converted at the SBI TT buying rate (TTBR) on the date of each dividend payment.

Where to get SBI TTBR:

• SBI's website (historical rates available; search "SBI TT buying rate" + date)
• FBIL (Financial Benchmarks India Pvt Ltd) — fbil.org.in publishes daily reference rates
• Your platform's tax report may include pre-converted INR amounts

3. Country code

India-US DTAA: Country code for the United States is US in Form 67.

4. Article of DTAA under which credit is claimed

For dividends from US companies to Indian individual residents: Article 10 of the India-US DTAA.

The withholding rate under Article 10(2)(b) for individuals is 25%. If your broker withheld 30% (the default NRA rate), you can only claim credit up to the DTAA rate of 25% — the excess 5% is not creditable under Indian rules unless you can demonstrate you paid it to the US government under treaty obligations. In practice, if you withheld 30% and are claiming DTAA treaty benefits, consult your CA about the excess 5%.

Where to file Form 67

Form 67 is filed online on the income tax portal (incometax.gov.in), separately from ITR-2. It must be filed on or before the due date of your ITR-2 — if you file your ITR-2 late, you cannot file Form 67 at all and forfeit the foreign tax credit.

Filing path: incometax.gov.in → Login → e-File → Income Tax Forms → File Income Tax Forms → Form 67

Form 67: field-by-field guide

Part A: General Information

A1. Name of the assessee: Your name as per PAN card.

A2. PAN: Your 10-digit PAN.

A3. Assessment Year: For FY 2025-26 income: 2026-27. For FY 2026-27 income: 2027-28.

A4. Address: Your Indian address.

Part B: Country-wise Details of Foreign Tax Paid

This section has one row per country where tax was withheld. For US dividends, you'll have one row for the United States.

B1. Country Name: United States of America

B2. Country Code: US

B3. Tax Identification Number in Foreign Country (TIN/EIN): Your US tax identification number. For most Indian RSU holders, this is your ITIN (Individual Taxpayer Identification Number) if you have one, or leave blank if you don't. If you have an ITIN, enter it here. If not, some CAs enter the EIN of the withholding agent — confirm with your CA.

B4. Nature of income on which tax is paid abroad: Select Dividend Income

B5. Source of income — Section of DTAA: Enter Article 10 (for dividends under India-US DTAA)

B6. Amount of income in foreign currency: Enter the gross dividend in USD (before US withholding). This is the "Gross Income" on your Form 1042-S, Box 2.

B7. Currency: USD

B8. Exchange rate as per TTBR: SBI TTBR on the dividend payment date. If multiple dividends on different dates, use the rate applicable to each date. If the form only allows one rate, use the rate for the largest dividend payment (or an average — consult your CA).

B9. Amount of income (in Indian currency): B6 × B8. This is the gross dividend converted to INR.

B10. Tax paid in foreign country in foreign currency: Enter the tax withheld in USD. This is Box 7 (Federal Tax Withheld) on your Form 1042-S.

B11. Tax paid in foreign country in Indian currency: B10 × B8 (same exchange rate as B8).

B12. Amount of foreign tax credit admissible: The credit is the lower of:

• Tax actually paid abroad (B11), or
• Indian tax payable on the same income

In most cases for dividends, the 30% US withholding equals or exceeds the Indian tax liability at 30% slab on the same income (because both rates are roughly equal at ₹84/$ TTBR). So the admissible credit is typically the full INR value of B11, capped at the Indian tax on that income.

Your CA or the portal's auto-compute will determine this. Enter the admissible credit amount.

Part C: Verification

Standard verification — your name, capacity (Self), date, place. Sign digitally via Aadhaar OTP or DSC when submitting online.

Multiple dividends in the year: how to aggregate

If you received quarterly dividends from multiple companies (e.g., VOO, AAPL, MSFT), you can consolidate all US-source dividends into a single Form 67 row for the United States, summing:

• Total gross dividends across all companies (B6)
• Total tax withheld across all companies (B10)
• Using a blended TTBR or the rate on the date of the largest dividend

Alternatively, file a separate Form 67 row for each company if you want granular tracking. The portal allows multiple rows.

Filing deadline

Form 67 must be filed on or before the due date of your ITR-2:

• For salaried individuals with no audit requirement: July 31 of the assessment year (AY 2026-27 = July 31, 2026)
• If the government extends the ITR deadline, Form 67 deadline typically extends correspondingly

If you miss the Form 67 deadline: You lose the foreign tax credit for that year. The US withholding is not refundable by the IRS (you are an NRA; you don't file a US return unless you have US-source income beyond NRA withholding). Filing Form 67 late — even by one day after the ITR deadline — forfeits the credit entirely.

Set a calendar reminder: file Form 67 at least one week before ITR deadline.

How Form 67 appears in ITR-2

After filing Form 67, the foreign tax credit flows into Schedule TR (Tax Relief) of ITR-2. The credit amount reduces your net tax payable. Ensure the ITR-2 Schedule TR reflects the Form 67 amount correctly before submitting.

DTAA rate vs default rate: W-8BEN

If your US broker is withholding 30% (the default NRA rate) instead of 25% (the India-US DTAA rate for individuals under Article 10(2)(b)), you can claim credit only up to the lower DTAA rate in Form 67. The excess 5% withheld beyond the DTAA rate is generally not creditable under Indian rules (it's withheld because you haven't claimed the treaty rate, not because the treaty requires it).

To get the 25% rate applied at source: File Form W-8BEN with your US broker, claiming treaty benefits under the India-US DTAA. Most Indian LRS platforms (Vested, INDmoney, Rovia) collect this during onboarding. If you haven't done this, contact your platform to update your W-8BEN status.

Note: Some tax practitioners argue the excess 5% can be claimed in India since India's DTAA credit rules allow credit for "tax paid" in the other country, not "treaty-rate tax." This is an area of CA interpretation; discuss with your tax advisor.

RSU dividend situations by company

Company	Dividend?	Form 67 needed?
Apple (AAPL)	Yes (~0.5% yield)	Yes
Microsoft (MSFT)	Yes (~0.8% yield)	Yes
NVIDIA (NVDA)	Yes (~0.03% yield — minimal)	Yes, but small amount
AMD	No	No
Broadcom (AVGO)	Yes (~1.3% yield)	Yes
Google/Alphabet	No	No
Amazon	No	No
Meta	Yes (~0.4% yield, started 2024)	Yes
VOO / SPY / IVV	Yes (~1.3% yield)	Yes
CSPX (accumulating)	No (accumulates inside fund)	No

Common mistakes

1. Not filing Form 67 at all — the most common mistake. Many CAs don't raise it proactively; RSU holders with small dividend amounts assume it doesn't matter. On $5,000 in dividends with $1,500 withheld (₹1.26 lakh), the credit saves ₹1.26 lakh in tax.

2. Filing Form 67 after ITR-2 deadline — credit is forfeited. File both together, Form 67 first.

3. Using wrong TTBR date — use the date of dividend payment, not the date you received the cash in your account.

4. Entering net dividend instead of gross — Form 67 requires the gross dividend (before US withholding). Enter what's in Box 2 of Form 1042-S, not what appeared in your brokerage account.

5. Claiming credit exceeding Indian tax — Form 67 caps the credit at Indian tax on the same income. If US withholding exceeds Indian tax (e.g., you're in a low-income year), the excess is not refundable.

Related reading

• How US stocks are taxed in India — full tax event framework
• ITR-2 walkthrough for RSU holders — complete filing guide
• Schedule FA complete guide — foreign asset disclosure
• SPY vs VOO vs CSPX for Indian investors — why CSPX eliminates the Form 67 need