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I moved to the US last October from India, I had spent more than 180 days in India during the Financial Year 2014-2015.

I am also eligible to be treated as a Resident for tax purpose in the US as I have been present here for more that 155 days in 2015 as well as more than 30 continuous days.

I was under the impression that I need to file as a resident in one of the places not both. I've asked for an extension to file the US taxes for 2014 to file as a resident, but the tax advisor in India is telling me that I can't file as non resident in India.

I want to understand what my tax liabilities are and how should I avoid double taxation?

  • I am in similar situation. We pay different taxes in the USA. What US tax I will get relief ( Federal tax, social security tax, state tax, midical tax ). – user32220 Aug 13 '15 at 17:26
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As you have spent more than 182 days in India, you would be considered as Resident Indian for tax purposes for the financial year 1 April 2014 to 31 March 2015. India taxes on the Global income. So your income in US for the period of Oct 2014 to 31 March 2015 needs to considered in India.

As US and India has Dual Tax Avoidance Agreement[DTAA], you can claim relief in India for the taxes already paid in the US on the US income. You would need to pay only the differential if you have paid less. For example if as per US, the taxes work out to be Rs 1000, and as per India its works out to be Rs 1100, you just pay Rs 100. If as per India its only Rs 900. There is no action.

  • Thanks for the answer @Dheer, so would it be ok for me to file as resident in the US and in India, and I should be able to claim relief based on the differential? Would that happen via a return or can I claim that at the time of filing taxes itself? – nikhil Jul 24 '15 at 15:33
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    @nikhil Yes you can file resident at both. You need to pay only the differential, and claim the amount of relief at the time of arriving/filing taxes. – Dheer Jul 24 '15 at 16:02

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