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I left India on 8th October 2014 and started working in USA from 13th Oct 2014. For my income in India, my employer deducted tax at source (Rs 30,000). In US too, my employer deducted tax at source but I filed for extension for income tax. Now that I have fulfilled substantial presence test in US, I am filing the return as Resident Alien for 2014 (I have never been to US before and I am on H1B). So the questions:

  1. Should I declare India's income while filing tax return for US for Calendar year 2014?

  2. In India, if I declare that I didn't work after October, I'll get 100% tax refund as my income will be below tax bracket (after deductions like 80C etc). So I think that is not correct. How to know the amount of tax I have to pay in India? Do I have to declare my US income there?

I don't have any other income from any sources in India.

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For the financial Year 1 April 2014 to 31 March 2015, you have spent more than 182 days in India and hence you will be treated as "Resident Indian" and not "Non Resident Indian" for tax purposes.

As Resident Indian, you will have to pay taxes on your global income. So in your case you have to declare your income earned in US from Oct 2014 till 31 March 2015 and pay tax accordingly. DTAA may help you somewhat. Consult a CA to guide you.

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