If the US already taxed your RSU vest, ESPP, or dividends, you usually don't pay twice. The India-US DTAA lets you credit US federal tax against your Indian tax — but you must file Form 67 to claim it.
In a hurry? Start with Schedule FA — ITRFA.in surfaces your NRA withholding automatically. Open the tool →
RSU and ESPP income is often taxed in both countries: the US taxes it at source (federal withholding on the vest/sale, or NRA withholding on dividends), and India taxes your global income as an ROR. The DTAA prevents double taxation through a foreign tax credit (FTC).
Why does this happen — where's the "double" tax?
As an ROR, India taxes your worldwide income — including the RSU perquisite value at vest, dividends from US shares, and any capital gains on sale — regardless of where the income arose. The US separately taxes the same events at source because the company and the shares are American: federal withholding on the vest/sale, and NRA withholding on dividends paid to a non-US-resident. Without relief, the same rupee of income would be taxed once by the US at source and again by India on your global return — that is the "double taxation" the DTAA addresses.
Simple example: $1,000 in US dividends, with $250 (25%) withheld by the US as NRA tax before you receive it. India taxes the same $1,000 as your income (at your slab rate, say 30% = $300). Without FTC, total tax paid = $250 + $300 = $550 on $1,000 of income. With FTC, India credits the $250 already paid to the US against your $300 Indian liability — you pay India only the difference, $50 — for a combined $300, matching what a single country's tax on that income would have been.
The credit is capped at whichever is lower — the US tax actually paid, or the Indian tax on that same income — so FTC eliminates double taxation but never creates a refund of foreign tax beyond your Indian liability on it.
Note: Form 67 is renumbered Form 44 under the Income-tax Act, 2025 (Rule 76), effective from Tax Year 2026-27 (filed in 2027). If you're filing for AY 2025-26 or AY 2026-27, keep using Form 67 as described below.
The five moving parts
Schedule FA — discloses the asset (Fidelity account, RSU/ESPP shares). See the full guide.
Schedule OS — where dividend income actually enters your taxable income computation, at slab rate. See our Schedule OS guide.
Schedule FSI — reports the same foreign-source income (dividends, capital gains) head-wise and the tax paid abroad — the figure Schedule TR/Form 67 need, not a second place that income is taxed.
Schedule TR — summarises the tax relief claimed by country.
Form 67 — the standalone form that actually claims the FTC; file it on the portal on or before submitting your return.
Yes, the same dividend figure appears in both Schedule OS and Schedule FSI — that's not double taxation, it's two schedules doing two different jobs: OS computes the tax on the income, FSI justifies the credit against that tax. See the Schedule OS guide for why this isn't a duplicate entry.
What is creditable
US federal income tax withheld on RSU vesting / ESPP / sales — creditable.
NRA withholding on US dividends (often shown in your Fidelity Transaction History) — creditable.
US state income tax — not creditable under the DTAA.
Credit is limited to the Indian tax on that same income — India won't refund excess US tax.
Form 67 timing matters. Rule 128(9) sets the outer deadline as the end of the relevant assessment year — 31 March 2027 for AY 2026-27 — but the credit must be claimed with a Form 67 already on file, so in practice file it before or together with your return. Missing or late Form 67 is a common reason FTC claims get disallowed.
Capital gains show up in Schedule FSI too — with zero credit. If you sold RSU/ESPP shares, that gain (net of any set-off, per Schedule CG) is foreign-source income and belongs in Schedule FSI alongside your dividends — even though it generates no FTC. The US doesn't tax a non-resident alien's gain on US-listed shares, so there's no foreign tax paid on that row to credit. Don't skip reporting it in FSI just because the tax-paid and relief columns are both zero.
Form 67 is not just for dividends. It is required whenever you claim FTC for any foreign-taxed income — most commonly the US federal tax withheld on RSU vesting or ESPP purchase, not only NRA withholding on dividends. If you had no dividend income but the US taxed your RSU vest, you still need Form 67 to claim that credit.
Where to find the US tax figures
W-2 (if you were a US employee) — federal income tax withheld.
1042-S — for NRA withholding on US-source income such as dividends.
Fidelity Transaction History CSV — line items like "NON-RESIDENT TAX" show dividend withholding. ITRFA.in surfaces this net NRA figure for you.
Export 15 months, not 12, if you're claiming FTC. Form 67 follows the same financial year (Apr–Mar) as Schedule FSI — three months past the Jan–Dec calendar-year export every Schedule FA guide tells you to pull. Withholding on a January–March 2026 dividend belongs in this year's credit claim, and a Jan–Dec Transaction History export won't contain it. Export Jan 1, 2025 – Mar 31, 2026 instead so no withholding gets missed. If your broker's date picker caps at 12 months, export twice — the app accepts multiple Transaction History files, just select both when uploading.
Skip digging through W-2s and 1042-S forms — upload your Transaction History and get the NRA figure pulled out for you. Upload now →
FAQ
Yes — file Form 67 on the portal on or before filing your return, per Rule 128.
Yes, if you're claiming FTC for any other foreign-taxed income — typically US federal tax withheld on an RSU vest or ESPP purchase/sale. Form 67 is tied to the credit being claimed, not specifically to dividends.
No. Only US federal income tax is creditable under the India-US DTAA. State tax is not.
Schedule FA discloses the asset; Schedule FSI reports the income; Schedule TR + Form 67 claim the credit. You usually need them together.
Yes — as foreign-source income, but with zero foreign tax paid and zero credit, since the US doesn't tax a non-resident alien's gain on US-listed shares. Report it in FSI's capital-gains row anyway; it just doesn't add to your FTC.
Rule 128(9): on or before the end of the relevant assessment year (31 March 2027 for AY 2026-27). But the credit needs Form 67 already filed when you claim it in your return, so file it before or with your ITR — don't wait for the AY-end backstop.
15 months — January 1 (previous year) to March 31 (this year) — not the Jan–Dec range used for Schedule FA. Form 67 follows the financial year (Apr–Mar) like Schedule FSI, so a Jan–Dec export misses withholding from January–March that belongs in this year's credit claim. Broker's picker capped at 12 months? Export twice — just select both files when uploading, no need to merge them.
Start with Schedule FA — done in 2 minutes
ITRFA.in computes Table A2, A3, F and surfaces your net NRA withholding from the Fidelity Transaction History CSV.
Informational only, based on current law (FY 2025-26 / AY 2026-27). FTC and DTAA rules are summarised; consult a chartered accountant for your situation.