New Delhi, July 15 -- If you are an Indian resident who has already paid tax on income earned outside India, you may not have to pay tax on the same income twice.

The Income Tax Department allows eligible resident taxpayers to claim a Foreign Tax Credit (FTC) by filing Form 67 along with the supporting documents.

A foreign tax credit allows Indian residents to reduce their tax liability in India by claiming credit for taxes already paid in another country on the same income. The provision is governed by Rule 128 of the Income Tax Rules, 1962.

Suppose Mahesh, an Indian resident, earns Rs.2 lakh as freelance income from a client in the US. The US deducts Rs.20,000 as tax before making the payment.

Since Mahesh must also report this inco...