6 min read · Updated June 2026 · Applies to AY 2025-26 and AY 2026-27
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.
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).
The four moving parts
Schedule FA — discloses the asset (Fidelity account, RSU/ESPP shares). See the full guide.
Schedule FSI — reports the foreign income (RSU perquisite, dividends, capital gains) and the tax paid abroad.
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.
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. File it before (or with) your return. Missing or late Form 67 is a common reason FTC claims get disallowed.
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.
FAQ
Yes — file Form 67 on the portal on or before filing your return, per Rule 128.
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.
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.