An export invoice holds a lot of importance for an exporter. It helps them to get paid, get clearance from the customs authorities during the inspection process, and stay compliant with global trade regulations.&nbsp;

In this blog, we have done a detailed breakdown of the above capabilities and covered types of export invoices to give you a comprehensive understanding.&nbsp;

An <a href="https://www.skydo.com/blog/should-i-invoice-in-inr-or-foreign-currency">export invoice</a> is a legal document containing descriptive details about the goods sold or the services provided. It is also considered a contract between the exporter and the foreign buyer and doubles as proof of sale. Customs and government authorities also check the export invoice to calculate the customs duties and taxes and give the final clearance for sale. In the case of unprecedented events like goods damaged due to natural disasters, you can use the export invoice for insurance claims.

It's also important to understand that an export invoice is different from a normal GST tax invoice. While both GST regular tax invoices and export invoices record sales transactions, the latter is meant only for international transactions. It contains additional details like the <a href="https://www.skydo.com/blog/iec-code-full-form-importance-fees">Import Export Code (IEC)</a> and other applicable foreign currency information.&nbsp;

What is the Importance of Export Invoices in India?

An export invoice plays many roles in India as follows:

Legal proof of export transactions: An export invoice is a legal document verifying a sale between an Indian exporter and a foreign buyer. It also serves as a legal proof in the case of any dispute

Customs clearance: As the export invoice includes details like quantity, rate, size, and volume, customs authorities use it to calculate taxes before handling the final clearance. Without an export invoice, it’s challenging for them to calculate tax, thereby stopping your products from export

Facilitation of payments: The payment terms and conditions are mentioned in an export invoice. So when the export invoice is made both parties adhere to those terms for a streamlined payment experience

Claiming export benefits: An Indian exporter can use the export invoice to claim rebates, tax credits, and incentives from the government. For example, The <a href="https://www.indiantradeportal.in/vs.jsp?lang=0&amp;id=0,55,23222">Remission of Duties and Taxes on Exported Products (RoDTEP) scheme</a> provides a rebate to exporters on central, state, and local taxes

Compliance with international trade laws: By sharing an export invoice, an exporter complies with international trade laws like the World Trade Organization (WTO) agreements. Due to this they enjoy a good reputation and avoid facing legal issues.&nbsp;

What are the Different Types of Export Invoices?

Wondering which type of export invoice is relevant to your business? Following is the list of the most important export invoices for Indian exporters:

This is a primary document for any export transaction. There is no specific format for the commercial invoice, but it must contain details like product description, quantity, price, seller information, shipping details, and payment terms.&nbsp;

The exporter shares a proforma invoice with the buyer as a price quotation before the actual shipment happens. It outlines the estimated costs, transaction details, and other sales terms to build transparency between the parties.&nbsp;

The customs authority of the importing country asks for a customs invoice. A customs invoice is similar to a commercial invoice but has extra details like the origin of goods, classification codes, freight, and insurance. The importer has to fill in the details in the specified format shared by the customs officials.

A tax invoice summarizes the tax applied at the time of sale. It is useful for an Indian exporter to claim GST refunds or export incentives under RoDTEP.&nbsp;

This invoice accompanies the shipment and gives a detailed breakdown of the shipment contents, item descriptions, packaging, and product dimensions. With the help of this invoice, both the importer and exporter can verify the items in the shipment.&nbsp;

Freight invoices are issued by freight forwarders or logistics providers like Keuhne + Nagel, DHL or Nippon Express to describe the freight and transportation charges incurred. It might also include additional expenses like packing costs incurred at the time of transportation. Such an invoice is useful to an exporter for accounting the logistics expenses effectively.

As per Indian Law, the timing of raising an export invoice depends on whether the shipment is for goods or services:

In the case of goods, an export invoice is raised on or before the removal of goods for export. This applies to three forms of transport: air, sea and land.

In the case of services, an export invoice can be raised before or after rendering the service. If it’s the latter, then it must be done within 30 days. The invoice timeline may vary in the case of continuous supply depending on the agreement.&nbsp;

What are the Contents of an Export Invoice?

Here is a comprehensive list of the contents of an export invoice:

This includes the name, address, phone number, and email address of the exporter. In certain cases, it might also include the GSTIN and the Import Export Code (IEC)

This includes the necessary information about the invoice like the unique invoice number and the date when the invoice was issued

Similar to the exporter’s details, the export invoice includes crucial information about the buyer like their name, address, contact details, and importer's country.&nbsp;

An export invoice includes a detailed description of the goods or services rendered. This includes quantity, unit price, total value, weight of goods, and the Harmonized System of Nomenclature (HSN) or Service Accounting Code (SAC) of the goods or services.

The value details specifically highlight the currency of the transaction (e.g. USD or Euro), Free on Board (FOB) or Cost Insurance and Freight (CIF) value, and the prevalent exchange rate if applicable.

In international trade, the seller might mention the International Commercial Terms (INCOTERMS) on an export invoice. The purpose of the INCOTERMS is to be clear about the delivery and risk transfer terms (eg. FOB, CIF, EXW), and the payment terms (eg. advance payment, Letter of Credit).

The exporter shares their bank name, account number, and SWIFT/BIC code in the export invoice to help the buyer make the payment.&nbsp;&nbsp;

This contains details like the mode of shipment: sea, rail or road. It also mentions the port of loading and destination and the shipping bill number if available

The GST registration number of the exporter is displayed on the export invoice if applicable. It also mentions the GST tax rate, however, in the case of zero-rated exports, the invoice should contain a declaration that the export is eligible for zero-rated treatment under the GST regime.

The exporter affirms with a statement that the export meets the international regulations, signs it, and affixes their seal as a declaration

This is a sample export invoice containing most of the details we mentioned above.&nbsp;

On the top left, the text boxes include the exporter’s, final and intermediate consignee’s details. On the right, it highlights other vital information like the order number, exporting carrier, origination state, destination country, loading terminal, and exporter’s contact number.&nbsp;

At the centre, the product details, unit price, and value are mentioned. At the bottom-right corner, the different fees like freight, handling and insurance are mentioned which are added to the total value of the goods to calculate the total amount due.&nbsp;

What Currency to Use in an Export Invoice?

The short answer to this question is: use your client’s currency in the export invoice. The long answer is, to consider multiple factors before making that decision. For example, if your client is based in the US, it makes sense to invoice them in US Dollars as it’s a stable currency.

However, you must also factor in the currency conversion fees the banks charge to credit your account in local currency. If the fees are very high, it may not be the best decision to invoice in the client’s currency.

The Reserve Bank of India (RBI) also allows Indian exporters to send export invoices in Indian currency (INR), it doesn’t necessarily has to be in a foreign currency.

Receive Seamless Export Payments with Skydo

An export invoice plays multiple roles in international trade. This single document helps an exporter stay compliant with international laws, get clearance from the customs authorities, and get paid on time.&nbsp;

<a href="https://www.skydo.com/">Skydo</a> is a trusted platform that streamlines and simplifies your payment experience from international clients. With Skydo, you can open a virtual account and bypass the SWIFT fees you must bear to receive bank account payments. Moreover, Skydo charges upfront fees and there are no hidden charges.&nbsp;

However, it is a good idea to use your client’s currency in the export invoice especially, if it is a stable currency. The long answer is, to consider multiple factors before making that decision. For example, if your client is based in the US, it makes sense to invoice them in US Dollars as it’s a stable currency.

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Imagine landing your first international client for your handmade jewelry, only to have your shipment held up at customs because your IEC (Importer Exporter Code) status shows "pending verification." This scenario plays out frequently for Indian businesses and freelancers who overlook IEC verification (an initiative by the government of India), leading to costly delays, storage charges, and potentially lost clients. The good news? A simple online verification process can help you avoid these headaches and ensure smooth international shipping.&nbsp;

This guide will explain how to check your IEC status online, understand different verification statuses, and prepare your business for hassle-free international trade.

An IEC is your passport for international trade. The Directorate General of Foreign Trade (DGFT) gives this unique 10-digit number to businesses and freelancers who want to trade internationally.

You need to verify your IEC details because:

There are two simple ways to verify your IEC

Step 1: Open your web browser and go to the <a href="https://www.dgft.gov.in/CP/">DGFT</a> website

Step 2: Look for the Login button at the top of the page. Type in your username and password

Step 3: Find and click on Services in the menu. Now look for IEC Management and click on it

Step 4: Here, you need to put in your PAN details and click Submit to see your IEC status or download your IEC certificate

Step 1: Visit the <a href="https://www.icegate.gov.in/">ICEGATE website</a>

Step 2: Find and click User Login under Services.&nbsp;

Step 3: After logging in, look for Check IE Code/BIN Status. Type in your IEC number, complete the captcha, and click IE Code @ ICEGATE to see your status

What are the Different Statuses of IEC Code Verification?

When you check your IEC application status, you'll see one of these status messages:

It means your application is being processed. You need to wait for four days to get the next update. During this time, DGFT officers review your documents and verify your international business details. You can use this waiting period to set up other aspects of your export business, like preparing product catalogs or finalizing your pricing strategy.

It means something wasn't quite right about your application process, and it got rejected (for example, maybe your address proof wasn't clear enough in the application). The next step could be to fix the issues and apply again (no extra fees needed). The good news is that the system will highlight which documents or details need correction, making fixing it easier. Most rejections are resolved within one resubmission, so don't get discouraged if this happens to you.

It means the DGFT has approved your <a href="https://www.skydo.com/blog/iec-code-apply-online">IEC application</a> and sent it to customs. The next step is to wait three days for customs clearance. During this time, your information is being integrated into the customs database, allowing you to ship goods internationally. You can track this status daily on the ICEGATE portal to know exactly when your code becomes active.

Registered by DGFT and Accepted by ICEGATE

It means you're all set to start your import and export operations. This status confirms that DGFT and customs systems recognize your IEC as valid and active. You can now register with shipping companies, apply for export benefits, and start accepting international orders and gigs with confidence that your documentation is complete and valid.

What are the Benefits of IEC Code Verification?

Picture losing a ₹5 lakh international project because your IEC verification wasn't current—it happens more often than you'd think. Understanding the benefits of IEC verification isn't just about following rules; it's about protecting your business and unlocking opportunities that could take your export activities to the next level.

When your IEC is verified, you'll breeze through customs checks without delays. A verified status means your documentation moves much faster, saving you time and money.

A verified IEC builds confidence in your business relationships. International clients can easily confirm that you're a legitimate freelancer. For businesses, shipping companies are more likely to process your orders quickly (keep the shipping bills handy), and banks view you as a credible business partner for financial services.

Regular verification acts as a security measure for your business. You can quickly spot if someone tries to misuse your IEC number for unauthorized trades. This verification status also serves as solid proof of your legitimate trading activities if questions ever arise.

With a verified IEC, you can easily access government export schemes for businesses like yours. Banks are more willing to offer export financing options, and you can confidently register for international trade shows. Plus, claiming benefits like duty drawback becomes much smoother.&nbsp;

What are the Common IEC verification issues and their fixes?&nbsp;

Below are some of the common IEC verification issues and their fixes you must know of:&nbsp;

If the status isn't updating: The system typically needs 24 hours to reflect changes, so patience is key. Early morning hours often work best for checking status updates. If you're still having trouble, try clearing your browser data for a fresh start.

Having login troubles: Most login issues have simple solutions. Check if you typed your username correctly. If you can't get in, use the password reset option. A common oversight is having caps locked on, so watch out for that. Always use the email address you registered with.

Website issues: The best time to check is early morning, between 6 AM and 8 AM, when there's less traffic. If you're using your phone, try switching to a computer instead. Sometimes, the problem is as simple as an unstable internet connection.

What Happens if I Don’t Verify my IEC Code?&nbsp;

Here are the potential consequences of not verifying your IEC Code number:&nbsp;

Receive Export Payments Seamlessly with Skydo&nbsp;

Having a verified IEC is your ticket to smooth international trade. However, it's equally important to manage your global payments efficiently. While traditional payment methods can reduce earnings through high fees and exchange rates, modern solutions like Skydo offer better rates for local receiving accounts.&nbsp;

<a href="https://www.skydo.com/">Get started with Skydo!&nbsp;</a>

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Sending money abroad can feel overwhelming, especially when understanding the compliance requirements. One key challenge Indian residents face is knowing when and how to file Form 15CA and Form 15CB, essential documents for making international payments to non-residents.

For example, if you run a software company in India and must pay USD 10,000 to a US-based UI/UX consultant, your bank will ask for Forms 15CA and 15CB before processing the payment.&nbsp;

Does that sound relatable? Don't worry. We're here to simplify it for you.

This blog will explain exactly what these forms are, why they matter, and how to file them easily. Let's get started!

Form 15CA is a declaration form required under Indian tax law, specifically <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a>. It must be submitted by any person making payments to non-residents or foreign companies when such payments are deemed taxable in India. This form ensures that the correct amount of tax is deducted at source (TDS) before the payment (remittance) is made.

Form 15CA helps the Income Tax Department monitor foreign remittance details and their tax implications. It also assists non-residents in claiming credit for taxes deducted in India.&nbsp;

TDS rate declaration: The form requires disclosing the TDS rate applicable to the payment. This rate may be based on either <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a> or any lower rate specified in a relevant DTAA.

Deductions: The payer must ensure that TDS is deducted at the source before paying, reflecting compliance with Indian tax obligations.

Form 15CB is a certificate from a Chartered Accountant (CA) required before filing Part C of Form 15CA. This certificate ensures compliance with the Double Taxation Avoidance Agreement and Income Tax Act for accurate tax deductions on payments. When making taxable payments above ₹5 lakhs to non-residents, you must first obtain this CA certificate and then use it to file Part C of Form 15CA.

Quick note: A DTAA is an agreement between two countries that helps determine the tax rates and obligations when making cross-border payments. For example, when paying a US-based consultant, the India-US DTAA helps decide which tax rate applies to your payment and how much TDS needs to be deducted before sending the money abroad.

TDS rate certification: In Form 15CB, the CA certifies the TDS rate applied to the payment. The rate could be determined as follows:

Deductions overview: The CA also confirms that all necessary deductions have been made according to legal requirements before remittance.

Let's break down Form no. 15CA into simple, digestible parts. Think of it as a document with four versions (A, B, C, and D), each for specific situations.

Part A: For taxable payments up to ₹5 lakhs

Use this version when you've got special permission from the tax officer (Assessing Officer) under <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq">Section 195(2), 195(3), or 197</a> to:

Think of it as a pre-approved tax discount. When filing, you'll need to show the official permission letter.

Details required: Payer (remitter) and recipient (remittee) information and the AO's order details.

This is for bigger payments. You'll need to use this when:

Important: You'll need your CA to provide Form 15CB first before filing this part. This extra step helps verify your tax calculations for larger amounts.

Use this when your payment isn't taxable in India. For example:

Even though these payments might be exempt, you must declare them through Part D of Form 15CA.

💡Quick Tip: When you're paying non-resident service providers (like international consultants, developers, or designers):

Remember: These forms are for sending money abroad, not for receiving international payments.

Form 15CA is not required in the following situations:&nbsp;

Form 15CB is not required in the following situations:&nbsp;

Existing AO certificate: If a certificate has been obtained from the Assessing Officer under Sections 195(2), 195(3), or Section 197, indicating that TDS does not apply or can be reduced, then Form 15CB is not required.&nbsp;

As per&nbsp;<a href="https://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007406.htm">Rule 37BB</a>, the following payments do not require Form 15 CA CB:

What Details are Required to File Form 15 CA CB?

The details required to file form 15CA are as follows:&nbsp;

The details required to file form 15CB are as follows:&nbsp;

Note: These supporting documents help your CA verify the applicable tax rates and prepare Form 15CB, but they're not directly submitted with the form.

How to file Form 15 CA and CB Online?&nbsp;

The steps to file Form 15CA online are as follows:&nbsp;

Step 1: Access the e-filing portal. Visit the <a href="https://www.incometax.gov.in/iec/foportal/">Income Tax forms page in the e-filing portal</a> and log in using your credentials (PAN, user ID, and password).

Step 2: Navigate to form selection. Go to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CA from the list.

Step 3: Choose the appropriate part of Form 15CA. Once at the instructions page, select the relevant part based on your situation: Part A for such remittances not exceeding ₹5 lakh, Part B if you have obtained a certificate from the Assessing Officer under Sections 195(2), 195(3), or 197, Part C for remittances exceeding 5 lakh rupees that are chargeable to tax (requires prior submission of Form 15CB), or Part D for remittances not chargeable to tax.

Step 4: Fill in the required details. In the selected part of Form 15CA, enter all necessary information as prompted, including details of both sender and receiver, nature of payment, and remittance amount.

Step 5: Verification and submission. Complete any required verification sections and submit Form 15CA online. A confirmation pop-up will appear upon successful submission, and you should receive an acknowledgement at your registered email address.

Step 6: Accessing submitted forms. After submission, you can view your submitted Form 15CA under the "Worklist" tab by selecting "For Your Information."

The steps to file Form 15CB online are as follows:&nbsp;

Step1: Preparation by chartered accountant (CA)&nbsp;

The CA must be registered on the Income Tax e-filing portal and have a valid Digital Signature Certificate (DSC). You must provide your CA with all necessary documentation to pay a non-resident.

The CA prepares Form 15CB, certifying that the payment complies with Indian tax laws and any applicable Double Taxation Avoidance Agreements (DTAAs).

Step 3: Log into the e-filing portal&nbsp;

The CA must log in using their credentials to visit the Income Tax e-filing portal.

Step 4: Access Form 15CB. After logging in, navigate to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CB from the list.

Step 5: Submission process Choose "Online" as the submission mode, enter the PAN of both the taxpayer and the CA, upload the prepared XML file generated from the downloaded utility, upload the DSC file generated using the DSC Management Utility, and click on the Submit button. You can also use the search box for any assistance.&nbsp;

Confirmation: Upon successful submission, a confirmation message and acknowledgment number (or transaction ID) will appear. The CA can view the uploaded Form 15CB under their dashboard. Keep the acknowledgement number for your future reference.&nbsp;

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Making international payments from India requires proper tax compliance through 15CA and 15CB documentation. Getting these right ensures smooth cross-border transactions and helps avoid regulatory issues.&nbsp;

Brands like Skydo simplify this process by providing instant FIRA documentation and GST-compliant invoicing for hassle-free global business payments.

Learn<a href="https://www.skydo.com/"> more about Skydo!</a>&nbsp;

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Form W8 BEN and Form W8 BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties.

For individuals, <a href="https://www.skydo.com/blog/w8-form-explained-what-indian-residents-must-know">Form W8 BEN</a> is the go-to form, while businesses need Form W8 BEN-E. Though they might seem complicated at first, filling them out is much easier than it looks.

In this article, we’ll walk you through how to complete these forms, highlight common mistakes to avoid, and share tips to simplify the process. If you're a Skydo user, our <a href="https://www.skydo.com/contact-us/support">customer support team</a> is also available to assist you every step of the way.&nbsp;

How to Fill Form W8 BEN as Indian Freelancers?

Form W8 BEN, also known as the "Certificate of Foreign Status," is for Indian individuals earning certain types of income from the U.S., including royalties or passive income.

This form proves you're a foreign person, Indian resident in this instance and ensures your income is taxed correctly. You’ll need to submit it when asked by the payer or withholding agent, basically your client or employer in the US. even if you’re not claiming a reduced tax rate or exemption from the standard 30% withholding.

This is how a Form W8 BEN&nbsp; looks like:

Part I: Identification of Beneficial Owner

This section contains your personal details as an Indian resident earning income from the U.S. Here’s how to complete it:

This is the most critical section. It allows you to claim tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention </a>to reduce or eliminate U.S. withholding tax.

Submit the completed form to your employer or client. If you’re a Skydo user, our <a href="https://www.skydo.com/contact-us/support">customer support team</a> is available to assist you in filling out the form and addressing any concerns you might have.

You can also download <a href="https://www.irs.gov/pub/irs-pdf/fw8ben.pdf">Form W8 BEN right here</a>

Do Indian freelancers need to file a W8 BEN?

Yes, Indian freelancers working with U.S. clients must file Form W8BEN and submit it to their clients. This certifies their status as Indian residents and allows them to claim a 0% tax withholding rate under the India-U.S. Tax Treaty.&nbsp;

How to fill Form W8 BEN E as an Indian Business?&nbsp;

The W8 BENE form serves a similar purpose as the W8 BEN but is specifically designed for Indian businesses and entities rather than individuals. Like individuals, income earned by foreign entities from U.S. sources is also typically subject to a 30% withholding tax. However, by submitting a correctly completed W8 BENE, Indian businesses will qualify for a reduced withholding rate as per the India-US Income tax treaty.&nbsp;

Here’s what the first page of Form W8 BEN E looks like:

Part I: Identification of the Beneficial Owner

This section captures your business details:

Part II: Disregarded Entity or Branch Receiving Payment

This section applies only to Foreign Financial Institutions. For most Indian businesses, you can skip this section.

This is the most critical section of the form, as it deals with claiming tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention.</a>

Most of the remaining sections deal with specific entities like financial institutions, banks, and international organizations. These sections don’t apply to regular Indian businesses providing services to U.S. clients.

Filling out the W8 BEN E can feel intimidating at first, but when you focus only on the sections relevant to your business, it becomes much simpler. Take it step by step, and you’ll be done in no time!

Can I file a W8 BEN and W8 BEN E without a U.S. TIN?

Yes, most Indian freelancers and businesses working with U.S. clients likely won’t have a U.S. TIN (Tax Identification Number). Instead, they can use their PAN or GSTIN as their FTIN (Foreign Tax Identification Number) when filing Form W-8BEN or W-8BEN-E.

How to Avoid Common Mistakes When Filling Out W8 Forms?

Filling out W8 Forms isn't really complicated. However, it is important to avoid some common mistakes to&nbsp;ensure your submission is accurate and hassle-free:

There are five types of W-8 Forms, but most Indian freelancers and businesses will need Form W-8BEN or Form W-8BEN-E.

Choosing the correct form based on your status—individual or entity—is essential to avoid payment delays or incorrect tax withholding. Always double-check before submitting.

It is important to share your Tax Identification Number on the W8 Form. If you don’t have a U.S. TIN, use your PAN or GSTIN as your FTIN. Ensure the number matches your official records.

It is important to quote the correct tax treaty clause to be able to claim reduced tax withholding or exemption.&nbsp;For Indian residents, cite Article 15 (Independent Personal Services) or Article 7 (Business Profits) of the India-U.S. Tax Treaty. Clearly state your claim for a reduced or 0% withholding rate.

Selecting the wrong entity type or failing to declare your financial status can become a problem. Most Indian businesses are Active NFFE (Non-Financial Foreign Entity). Select the correct classification to avoid rejection.

W8 forms should always be submitted to the withholding agent requesting it, not directly to the IRS.

Receiving payments from U.S. clients can be complicated. Banks often charge hidden fees, add forex markups, and require multiple follow-ups to ensure payments arrive on time.

Skydo offers a simpler solution. With a virtual U.S. account, your clients can make local payments, eliminating SWIFT charges. Payments are converted at live exchange rates, ensuring you keep more of what you’ve earned.

If you need help filling out your W-8 form, our support team is here to assist. Once completed, receiving payments from the U.S. becomes straightforward and efficient with Skydo.

Focus on your work, not payment hassles. Let Skydo handle the rest.

How to Fill W-8BEN and W-8BEN-E Forms: A Guide for Indian Freelancers & Businesses

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Working with international clients is exciting, but dealing with taxes? Not so much!

If you're providing services abroad, you might be worried about getting taxed twice - once in the client's country and again in India. For instance, when a US client pays you, they might deduct their local tax, and India wants its share, too!&nbsp;

This is where the Foreign Tax Credit (FTC) comes to your rescue. And to claim it, you need to fill out Form 67.&nbsp;

In this guide, we'll walk you through the steps of filing Form 67, and how to claim a Foreign Tax Credit for taxes you've already paid abroad. No more paying twice for the same income!

What is the Foreign Tax Credit in Form 67?&nbsp;

Foreign Tax Credit is a mechanism that allows you to claim credit in India for taxes you've already paid in another country on your foreign income. It's designed to prevent double taxation - paying full taxes twice on the same income. You must file Form 67 with the Indian tax department to claim this credit.

It's like getting a discount on your Indian taxes for the tax you've already paid in another country.&nbsp;

Here's a quick example to make it clearer:

Let's say you're a freelance graphic designer in India who did work for a United States company:

Using Form 67, you can claim credit for the ₹62,250 already paid in the US:

Final tax you pay in India: INR1,24,500 - INR62,250 = INR 62,250

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