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Need some suggestion on the tax relief under section 90 of Income Tax. I was deputed in USA during the period of Jan-2014 till Aug-2014. During this period my salary (Indian salary converted to $) plus living allowances gets credited to US bank account. I paid all the taxes (federal, social security, state taxes) in US using W-2.

When I returned to India in Sep-2014, my employer deducts the tax on the salary computed during that deputation period (Apr-14 to Aug-2014) which results in 0 net salary - which means I paid the tax on salary in USA as well as in India (which is not even credited in my Indian account). So my question while filling for tax relief under DTAA in ITR at India:

  1. Shall I include both salary plus living allowance (during Apr-2014 to Aug-2014) as Income from Outside India or only salary (as I read that living allowance is exempt from tax) under FSI. Please note that salary is credited in USA account not Indian account
  2. Only federal tax can be considered as tax paid for relief.
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Please consult a professional CA

as Income from Outside India or only salary

Open to interpretation

Only federal tax can be considered as tax paid for relief

Yes thats right. DTAA is here

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