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  • I moved to US in October 2014 end which makes me resident Indian form Indian taxation perspective.
  • I paid my US tax for the income of October, November and December 2014.

Now while filing India tax, I can claim the US tax paid as foreign credit but I am confused about filing India tax on US income of Jan, Feb and March 15.

I have looked at similar questions and also looked over internet, but haven't found any details which explains how to report this income while filing Indian tax and avoid double taxation.

Question:
If I count complete US income in the month of Jan, Feb and March 15, as taxable and pay tax in India now, can I claim this tax as foreign tax credit while filing tax in US next year?

Looking at the IRS website, I highly doubt that tax on US income can be claimed as foreign credit. Is there any other way to avoid double taxation?

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India and US follow different calendar year. From India tax point of view for the period of 1 April 2014 to 31 March 2015, your US income from the period end Oct 2014 to 31 March 2015 needs to be included.

Note for the period 1 Jan 2015 to 31 March 2015, you need to pay tax in the US and claim relief in India, rather than other way round.

There is dual tax avoidance agreement. See here

You can also browse through DTAA tag.

Please consult a professional CA to guide you. Tax deductions and Tax returns are not the same. Filing of tax returns in India needs to be done by 31 July of the Assessment year only in case there is an self-assessment tax that needs to be paid. Otherwise the date is 31 March of the Assessment Year. i.e. in your case if you have paid all the taxes and there is no tax due, you can file the returns by 31 March 2016.

  • On the income of these months, US tax will be filed only in 2016, while India tax i need to file by July 2015. So, how do i claim foreign tax credit in India tax return when i have not yet paid the tax in US? – Suren Jul 20 '15 at 5:17

protected by Chris W. Rea Oct 24 '16 at 18:03

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