How long has your husband been in the U.S. in 2006? If the entire year (like you), then his salary is subject to U.S. taxes. The source of the income is irrelevent, because those on L-1 visas who work in the U.S. longer than 183 days are taxed as resident aliens.
You can avoid double taxation on his India income by filing Form 2555 to claim the Foreign Tax Exclusion or by filing Form 1116 to claim a Foreign Tax Credit.
You cannot filing jointly and claim ZERO income for your husband, because residnet aliens must pay U.S. taxes on ALL of their world-wide income.
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