64A Form

What Is 64A Form?

64A -Form is a record specified under India's income tax legislation for those who receive money from foreign countries and seek exemption or deductions from the double taxation treaty (DTAA). The purpose of the FBAR form is to declare foreign income and claim tax relief/credit tax paid in the country of residence.

An individual is supposed to file a Form 64A while filing their income tax return to apply for a relief allowable on TDAA grounds. The content includes details on the taxpayer himself/herself, their income from foreign sources, taxes paid or deducted in such alien countries, and the relevant laws under the DTAAs.

Information within the 64A helps taxpayers reconcile their foreign income with Indian tax legislation and gives such individuals relief or credit certificates for taxes they have paid abroad. The principle of disclosing the foreign income and taxes paid in the form of correct information can minimize the tax liability in the fastest and followed tax regulations.

Example Of 64A Form

It is actionable to look at Form 64A, for example, when Mr. Patel is living and earning income in the United States while being taxed in the US and India. Mr. Patel has completed Form 64A, which describes his foreign income and US taxes and refers to relevant provisions of the India-US double taxation avoiding agreement (DTAA).

Mr. Patel declares details of his income in India using Form 64A while submitting the Indian income tax returns. He will then seek relief under the DTAA of the double taxation of foreign incomes. The form is essentially a mechanism for Mr Patel to synch his tax commitments in both countries by declaring the taxes he has paid in the US so that he gets the right amount of credit and relief, if any.

India DTAA lays down some provisions applicable to the salaries and compensations of foreign employees. Besides, with the help of form 64A, Mr Patel establishes his compliance with Indian tax laws while declaring the smallest amount of taxes that he is supposed to pay regarding his foreign income.