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jayeshgsv
Aug 24, 2009, 01:35 PM
Hi,
I am currently working in US on L1. I came US on 3-Apr-2009. I am going back in Oct 2009. Currently I am paying tax applicable for CA, USA. I am married.
Do I need to pay tax in India also when I will file return in India for 2009-2010?
I have Home Loan in India. Can I get any tax benefit while filing retruns in US?
Appreciate your reply with detail explanation on this situation.

AtlantaTaxExpert
Aug 24, 2009, 02:31 PM
The income you earn while in California IS subject to both CA state and federal income taxes, as well as FICA (Social Security and Medicare) taxes.

It MAY be subject to Indian income taxes as well; I am NOT an Indian tax expert, so I cannot say for sure, but you can post the question to mytaxes - Index (http://mytaxes.in) to determine your Indian tax liability.

You will file your U.S. return as a non-resident alien, filing Form 1040NR plus Form 2106 to claim daily living expenses. Such a deduction IS permitted because your stay in the U.S., being LESS than six months, qualifies as a temporary job. This assumes you did NOT receive a tax-free daily living stipend from your employer.

If you need professional help filing, we specialize in such filings for client in overseas locations. You can contact us at taxexpert@<hidden>.

MukatA
Aug 25, 2009, 01:09 AM
About India taxes, you can post at mytaxes - Index (http://mytaxes.in)
Short reply: Do not enter India before October 6, 2009.