According to Pub. 519 Chapter 5, Indian F1 visa taxpayer can claim spouse as dependent in Line 7c of 1040NR along with ITIN application 'APPLIED', if they don't have income. (My spouse on F2 visa, so no SSN/ITIN yet).
Also I remember Article 21, says Individual/Married Filing Separately can use standard deduction of around $6250 instead of Itemized deductions.
The agent at H&R Block seems to be unsure but told me that since I am claiming my spouse as dependent, its not married filing separate and hence I cannot claim Standard deduction.
Can someone confirm if I can take both standard deduction as well as claim spouse as my dependent? Or any advice on getting this information from an official source? I mailed IRS but not sure If I will ever get reply.