I am in USA for last 5 months of 2015 and was there for 4.5 months in 2014, so I am a resident alien in USA for year 2015.
I have below questions for the IT return for year 2015 in USA:
- Do I need to club India income in USA tax computation which was earned before entering USA? There was already a TDS [Tax Deducted at Source] on all such incomes in India
- Which all taxes I need to pay in US for India income out of various US taxes i.e. Federal, Social security, Medicare, State?
- I had few India income (Salary, Interest, Dividends, interest on PPF [Voluntary Pension Account], interest on tax free bonds) which was earned when I was in USA. Would it be treated differently than income earned before coming to USA?
- As India Financial Year ended on Mar'15, how should income be added for USA because I filed the ITR [Income Tax Returns] for full year Apr'14 to Mar'15 in India. How should I separate out the income of from Jan-Mar'15 out of the final tax return in India for Financial Year 2014-15?
- Do I need to club Indian income on PPF, tax free bonds, EPF [Mandatory Pension Plan], medical benefits, ELSS [Equity Linked Tax Saving Scheme] etc as these are tax free in India?
- If we club India income of 2015 in US tax return then how do we file it with Indian ITR [Tax Returns] for Financial Year 2015-16
Please clarify on above points to provide me more insights on US tax computation
There are few questions already existing on the site for same topic, but I had few specific questions to be answered, hence created a new question.
PPF - Public Provident Fund. A voluntary tax saving scheme that an individual can subscribe. There is a lock-in period and contributions are exempt from income. Interest and withdrawals are tax free.
EPF - Employee Provident Fund. Run by Govt or approved private trusts. There is an Employer's contribution as well has Employee's contribution. Employer's contribution is not included as income for Employee. Employee's contribution is tax exempt.
ELSS - Equity Linked Savings Scheme. A Voluntary scheme. Contributions are tax free and withdrawal after maturity are tax free.