Employee denied foreign tax credit w/o Form 67

A software professional from Hyderabad, employed by M/s Colruyt Consultancy India Pvt. Ltd. and ITC Infotech India Ltd., earned Rs 19.19 lakh in total income during the assessment year 2019-20. While working in Belgium, he paid Rs 4.53 lakh in income tax on his Rs 14.42 lakh salary. He claimed Rs 3 lakh as foreign tax credit (FTC) in India, based on India's Double Tax Avoidance Agreement (DTAA) with Belgium.

However, the tax department rejected his claim due to the missing Form 67. The employee challenged this decision in the Income Tax Appellate Tribunal (ITAT) Bangalore, with the help of Chartered Accountant Gaurav Makhija. The tribunal ruled in his favor, stating that the procedural lapse related to Form 67 should not result in the denial of FTC, as it would lead to double taxation.