The Mumbai Branch of the Income Tax Court of Appeal ruled in favor of Bollywood actress Sonakshi Sinha, giving her a huge relief. In the tax case filed in the UK, the court upheld the foreign tax credit claim of Rs 29 lakh made by the actress.
The matter came to light when a tax official refused to accept the form after the stipulated time. The IT Act reportedly states that a taxpayer in India can get credit for foreign earned income or professional income or foreign assets for taxes paid in another country. Their goal is reportedly to avoid double taxation.
According to an ETimes report, Sonakshi Sinha’s tax returns for the 2017-18 fiscal year were selected for limited scrutiny to determine the accuracy and eligibility of the credits claimed by her. The tax officer had claimed that the actress had filed her return on September 22, 2018, but she filed Form 67 to claim credit on January 20, 2020, which is the tax return filing date. or before. According to the report, due to the delay, Sinha was denied credit and the matter reached ITAT.
Last month, the Central Board of Direct Taxes changed the rule, allowing people to file credit forms at or before the end of the relevant assessment year. Puneet Gupta, Partner, People Advisory Services, EY-India, said: “This extension will apply to foreign tax credit claims from the current fiscal year 2022-23 and onwards.”
According to Gupta, ITAT’s decision will help taxpayers involved in similar litigation. In addition to Sonakshi Sinha, the court also ordered another person, Anuj Bhagwati, to claim a foreign tax credit of Rs 14.22 lakh for taxes paid in the US. ITAT subsequently agreed with Sonakshi Sinha’s claim. that the form is a procedural requirement and is not mandatory.